Kia Achieves Record Quarterly Revenue in Q1... Operating Profit Down Due to Tariff Burden (Update)

Kia announced on April 24 that its operating profit for the first quarter was KRW 2.2051 trillion, a decrease of 26.7% compared to the same period last year.

Revenue reached KRW 29.5019 trillion, up 5.3% year-on-year, marking a record high for a single quarter. Pre-tax income (ordinary profit) was KRW 2.6352 trillion, while net profit was KRW 1.8302 trillion. The operating margin stood at 7.5%, down 3.2 percentage points.

A Kia official stated, "Not only was the impact of tariffs on imported finished vehicles in the United States fully reflected, but profitability was also affected by external factors such as increased incentives due to intensified competition in the North American and European markets, and a rise in sales warranty provisions caused by a sharp surge in exchange rates at the end of the quarter." The official added, "Nevertheless, we maintained solid fundamentals, achieving record revenue through an improved product mix centered on high-profit models and an increase in average selling price (ASP)."

Wholesale vehicle sales for the first quarter reached 779,741 units, a 0.9% increase compared to the same period last year. This is the highest first-quarter figure on record. Of these, 141,513 units were sold domestically and 638,228 units overseas.

In the domestic market, sales grew by 5.2% year-on-year as demand for electric vehicles such as the EV3, EV5, and PV5 increased following the implementation of new EV subsidies.

In overseas markets, sales in the Middle East and Central Asia region declined due to supply disruptions caused by the closure of the Strait of Hormuz amid U.S.-Iran tensions. However, overall overseas sales remained at the same level as a year earlier, thanks to proactive sales shifts to other regions, expanded supply of new hybrid models like the Telluride and Sportage in North America, and efforts to boost EV-centric sales in Western Europe.

For retail sales, despite a 7.2% year-on-year decline in global industry demand, Kia achieved growth in all regions except the Middle East and Central Asia, increasing local sales by 3.7%. As a result, Kia's global retail market share rose by 0.5 percentage points year-on-year to 4.1%. This is the first time Kia’s global market share has exceeded 4%.

Costs related to U.S. tariffs amounted to KRW 755 billion. Other external factors, such as increased incentives due to intensified competition in North America and Europe and a rise in foreign currency sales warranty provisions caused by a sharp increase in the won-dollar exchange rate at the end of the first quarter, also had a significant impact on costs.

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