Following Hyundai, Kia also achieves record quarterly performance... Operating profit margin jumps to 12% (Update)

Kia Q1 Business Performance Announcement
Revenue 23.7 Trillion KRW · Operating Profit 2.9 Trillion KRW
Operating Margin 12.1%... "Global Top Level"

Kia announced on the 26th that its consolidated operating profit for the first quarter of this year reached 2.874 trillion KRW, an increase of 78.9% compared to the same period last year.

Sales during the same period rose 29.1% to 23.6907 trillion KRW, with an operating profit margin of 12.1%. Sales, operating profit, and operating profit margin all recorded the highest quarterly figures. The company had previously set a quarterly record in the fourth quarter of last year, but surpassed it in just one quarter.

Kia Exhibition Hall at the Shanghai International Motor Show, China

Domestic and overseas sales volume in the first quarter reached 768,251 units, up 12.0% from the same period last year. Net profit increased by 105.3% to 2.1198 trillion KRW. Profitability indicators hit record highs for two consecutive quarters following the fourth quarter of last year. The operating profit margin rose by 3.3 percentage points compared to the same period last year, ranking among the highest levels among global mass-market automobile brands. The cost of sales ratio increased by 3.1 percentage points to 77.3%, while the selling and administrative expense ratio decreased by 0.2 percentage points to 10.6%.

The company stated, "Sales increased due to steady demand, normalization of production, and expansion of available inventory. The sales price rose due to a focus on high-profit vehicles and reduced incentives, improving the profit structure. Favorable exchange rate effects also contributed, resulting in record-high sales and operating profit."

By market, domestic sales of recreational vehicles (RVs) increased due to production normalization. There was also a base effect since production was slow in the first quarter of last year due to semiconductor and other parts supply shortages. Overseas sales also increased as supply conditions improved. The India plant increased volume by switching to a three-shift system, and sales grew mainly for new models.

Kia Q1 Business Performance

Sales of eco-friendly vehicles stood out. Sales increased by 21.1% compared to last year, reaching 133,000 units, centered on the new Sportage Hybrid and Plug-in Hybrid Electric Vehicle (PHEV). The share of eco-friendly vehicles rose by 2.3 percentage points to 18.1%. By type, hybrids accounted for 71,000 units, PHEVs 21,000 units, and electric vehicles 41,000 units. Market share by region was 32.0% domestic, 36.0% Western Europe, and 14.0% the United States.

The company explained, "In the first quarter of last year, Western Europe and the United States accounted for 75% of electric vehicle sales, but in the first quarter of this year, Western Europe decreased to 44%, the United States to 15%, while the domestic share rose to 34%. Sales also increased evenly across other regions, mainly emerging markets."

Kia Hwaseong Plant EV6 Production Line

Although raw material price volatility has intensified and external conditions such as interest rates and inflation remain unstable, the company expects to maintain the current momentum as a virtuous cycle system has been established across production and sales. It anticipates strengthening its electric vehicle brand position centered on the dedicated electric vehicle EV9 while responding to market demand focusing on high-profit models such as eco-friendly vehicles and RVs.

In the United States, Kia plans to increase Telluride production volume and sell more high-profit models focused on key SUVs by segment. In Europe and India, supply will be increased mainly for SUVs, and major electric vehicles will be introduced sequentially according to market conditions. The company stated, "With the entry into the peak sales season in the second quarter, competition among manufacturers is expected to intensify. However, we will maximize profitability through confidence in enhanced product quality and differentiated incentives and pricing policies based on target profit margins."

This content was produced with the assistance of AI translation services.