Kia Records All-Time High Q2 Revenue of 33 Trillion Won... Operating Profit Down 5% (Comprehensive)

Record-High Quarterly Sales and Revenue Achieved
Domestic EV Sales Up 123% Year-on-Year
Hybrid Surge in the U.S., Now 30% of Total Sales
"Robust Second-Half Performance Expected on New Models and Eco-Friendly Vehicle Demand"

Kia achieved both the highest-ever quarterly sales and revenue in company history. However, operating profit declined compared to the same period last year due to factors such as tariffs and incentives.

New Telluride Lineup. Kia

Kia announced on the 24th that in the second quarter of this year, it recorded revenue of 33.037 trillion won and operating profit of 2.6285 trillion won.

Revenue increased by 12.6% year-on-year, while operating profit decreased by 4.9% from a year earlier. The operating margin (8%) fell by 1.4 percentage points over the same period, but has shown an upward trend for three consecutive quarters since hitting a low of 5.1% in the third quarter of last year.

A Kia official emphasized, "Unlike last year, when we struggled with profitability due to U.S. auto tariffs, this year we are seeing the fundamental profitability of the company being restored."

Looking at sales performance, Kia's global wholesale sales reached 851,639 units in the second quarter, an increase of 4.5% from a year earlier. Of this, domestic sales accounted for 154,816 units and overseas sales 696,823 units, representing 18.2% and 81.8% of the total, respectively.

Global retail sales totaled 839,000 units, up 5.8% compared to the second quarter of last year.

The All New Seltos. Kia

Although global industry demand fell by 3.8% due to instability in the Middle East and weakening consumer sentiment in China, Kia overcame these challenges and achieved record sales. This was a result of proactively establishing an electrified lineup, responding swiftly to regional demand shifts even amid high oil prices, and timely launching new models.

Domestic retail sales reached 154,000 units, an 8.6% increase year-on-year, driven by growing sales of electric vehicles (EV) such as the EV3, EV5, and PV5. In the U.S., sales benefited from the new Telluride as well as strong demand for key SUVs like the Sportage and Sorento, totaling 224,000 units, a 2.8% increase. All of these models are SUVs that also offer hybrid variants.

In Western Europe, sales totaled 151,000 units, a 12.9% year-on-year increase, on the back of new product effects from the EV2 launched in the first quarter of this year, as well as the EV4, EV5, and PV5, which saw full-scale sales begin in the fourth quarter of last year (October-December). This is considered a notable achievement compared to Western Europe's overall automotive market growth rate of 4.8%.

Buoyed by strong performances in major markets, Kia's global market share in the second quarter of this year rose to 4%, up 0.3 percentage points from 3.7% in the same period last year. On a first-half basis, Kia achieved its highest-ever market share of 4%. Excluding China, the figure increases to as much as 5%.

Examining operating results, Kia posted record quarterly revenue of 33.037 trillion won, up 12.6% from the second quarter of last year. Increased sales of hybrid electric vehicles (HEV) and EVs in advanced markets such as the U.S. and Europe led to a higher average selling price (ASP), which boosted revenue.

The decline in operating profit was attributed to aggressive pricing and incentive policies adopted in domestic and Western European markets in response to Chinese EV brands, as well as an increase in warranty provisions denominated in won due to the depreciation of the Korean currency (higher exchange rates).

The record-high quarterly sales achievement was driven by increased sales of electrified vehicles (xEV). In the second quarter, global xEV retail sales reached approximately 296,000 units, a 60% increase compared to the same period last year.

Amid persistently high oil prices, EV demand grew in Korea and Western Europe, while HEV demand rose in the U.S., as Kia implemented regionally optimized powertrain (PT) strategies in a timely manner. The xEV sales proportion (35.3%) also rising by 11.9 percentage points year-on-year during the same period.

EV sales surged by 88.4% year-on-year, totaling 110,000 units. This was powered not only by the launch of mass-market EVs (EV2, EV4, EV5) but also by robust sales of Kia's first PBV model, the PV5.

In particular, domestic EV sales in the second quarter surged to 38,000 units, up 123.4% from the same period last year. The share of EVs in Korea's total sales (24.5%) more than doubled compared to the second quarter of last year (11.9%). In Western Europe, EV sales volume (52,000 units) also rose by 101.5% year-on-year.

Sportage. Kia

HEV sales amounted to 178,000 units, up 61% from a year earlier. This was attributed to the new car effects of models such as the Telluride Hybrid and Seltos Hybrid, as well as strong sales of existing high-volume hybrid models like the Sportage, Sorento, and Carnival.

Growth in HEV sales was particularly pronounced in the U.S. During the second quarter of this year, HEV sales in the U.S. reached 66,000 units, a 151.6% increase year-on-year. The share of HEVs in Kia's total U.S. sales approached 30%, reaching 29.6%.

Kia forecasts robust results in the second half of the year and expects to meet its annual performance guidance. The company believes it is well-positioned with competitive new models and ongoing demand for both EVs and HEVs.

Seongkuk Jeong, Executive Vice President of IR/Strategic Investment at Kia, stated, "We will continue to maintain strong profitability by improving the sales mix centered on high value-added vehicles and through ongoing multi-faceted cost reduction efforts."

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