Kia Achieves Unprecedented Q1 Sales Driven by Hybrid and Premium Vehicle Demand

Synopsis

Kia reports record Q1 sales, driven by demand for hybrids and premium vehicles, despite a decline in operating profit due to base effects. The company sold over 772,000 vehicles globally, with significant increases noted in the U.S. and emerging markets. It plans to enhance its high-value model lineup amid global market uncertainties.

Key Takeaways

Kia achieved record Q1 sales of 28.01 trillion won.
Operating profit fell by 12.2% to 3 trillion won.
Global vehicle sales increased by 1.6% to 772,648 units.
Demand for hybrid and SUV models surged, particularly in the U.S.
Kia plans to strengthen its high-value model offerings.

Seoul, April 25 (NationPress) Kia, the second-largest automobile manufacturer in South Korea, announced on Friday that it has achieved unprecedented sales for the first quarter, fueled by strong interest in hybrid and high-margin vehicles, although its operating profit saw a decline attributed to a base effect.

Kia's sales for the period of January to March increased by 6.9 percent compared to the previous year, reaching 28.01 trillion won (approximately US$19.53 billion) on a consolidated basis, marking a record-breaking first quarter, as stated in the company’s regulatory filing.

The operating profit for the quarter amounted to 3 trillion won, reflecting a year-over-year decrease of 12.2 percent, while net profit fell by 14.8 percent to 2.39 trillion won.

Despite the record-breaking first-quarter sales, the earnings did not meet market expectations. Analysts had predicted an average net profit of 2.46 trillion won, according to a survey conducted by Yonhap Infomax, the financial data arm of Yonhap News Agency.

During the January-March period, Kia sold a total of 772,648 vehicles worldwide, an increase of 1.6 percent compared to the same timeframe last year.

Kia credits its impressive sales performance to rising demand for hybrid and other eco-friendly models, as well as high-value sport utility vehicles (SUVs). Notably, there was a surge in demand in the United States prior to tariff increases implemented earlier this month, alongside strong sales in India and other emerging markets.

The automaker also noted a significant reduction in incentives across major markets in the first quarter, along with a base effect stemming from last year’s robust EV9 sales in North America, which contributed to the decline in operating profit.

Kia's domestic sales experienced a 2.4 percent decrease, totaling 134,564 units, primarily due to the discontinuation of models such as the K3 and Mohave. In contrast, international sales rose by 2.5 percent to 638,084 units, driven by healthy demand in North America, a successful launch of the Syros in India, and growth in the Middle East and Latin America.

In Europe, sales dipped slightly as consumers awaited the updated Sportage PE model, which is expected to launch in the second quarter.

Kia has stated its commitment to enhancing its portfolio of high-value models and adapting swiftly to market fluctuations amid escalating global uncertainties.