[Click eStock] "Kia Expected to Improve Profitability with Strengthened U.S. Local Production"

Focusing on New HEV Models Like Telluride to Target the U.S. Market

Kia is expected to improve its profitability in the U.S. market. Analysts attribute this to a reduction in tariff impact and enhanced profitability driven by strengthening local production of hybrid vehicles (HEVs) in the United States.

On November 25, Daishin Securities raised Kia's target stock price by 3.4% to 150,000 won, maintaining its 'Buy' investment rating, citing these factors. The previous day's closing price was 114,000 won. Although Kia's stock price rebound from recent lows has been less pronounced compared to Hyundai Motor Company, Daishin Securities believes the company still has significant growth potential.

Next year, Kia's sales are projected to reach 118.5873 trillion won, with operating profit expected at 10.9043 trillion won. This represents year-on-year increases of 3.8% and 20.1%, respectively. The primary driver is the base effect from tariffs. Quarterly tariff impacts are expected to decrease by 450 billion won from this year, reaching approximately 750 billion won. Additionally, the launch of the Telluride FMC in the U.S. in the fourth quarter of this year, the introduction and expanded production of HEVs in the first quarter of next year, are also cited as factors for improved performance. The report concludes that Kia's earnings growth will be particularly strong in the U.S. market.

In 2025, Kia will have the Telluride HEV (U.S.), Seltos, and EV3 & EV4 (Europe) lineups. In the U.S., the company plans to respond with the launch of the new Telluride, as well as focusing on HEV models of Sportage, Carnival, and Sorento. In Europe, the introduction of the EV2 is expected to help increase market share.

Kim Kwiyoun, an analyst at Daishin Securities, explained, "More than 50% of the new car lineup in the U.S. consists of retail sales, and the growth rate of U.S. HEV demand is expected to reach 17% next year. We expect Kia's market share to rise throughout the year, and that profitability will improve significantly due to strengthened local production of HEVs in the U.S."

New Telluride Lineup. Kia

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