Kia Posts Q3 Revenue of 31.5974 Trillion Won... Operating Profit Rises 24.3%

Operating profit of 1.8183 trillion won, operating margin of 5.8%
Global wholesale sales rose 7.9% year over year to 847,355 vehicles
Electrified vehicle sales up 47%... Growth led by hybrids in the U.S. and EVs in Western Europe
Market shares in South Korea and the U.S. hit quarterly records

Kia continued to grow global sales and revenue in the third quarter of this year. Electrified vehicle sales rose sharply, and the company expanded its market share in major markets, including the United States and Western Europe. However, improvements in profitability were limited by rising raw material prices, conflicts in the Middle East, and the cost of incentives to boost electric vehicle sales.

Kia held an investor relations briefing on October 30 and reported consolidated revenue of 31.5974 trillion won and operating profit of 1.8183 trillion won for the third quarter of 2026. Revenue rose 10.1% year over year, while operating profit increased 24.3%. The operating margin was 5.8%, up 0.7 percentage points from the same period last year. Net income fell 9.6% to 1.2855 trillion won.

Kia's Yangjae headquarters. Kia.

Global wholesale sales in the third quarter rose 7.9% year over year to 847,355 vehicles. Domestic sales totaled 141,013 vehicles, while overseas sales reached 706,342. Global retail sales, a retail metric, also increased 6.9% to 829,000 vehicles. Sales in Africa and the Middle East fell 23% amid the effects of regional conflicts, but growth in major markets, including South Korea, the United States, and Western Europe, offset the decline.

In South Korea, industry demand fell 10.7%, but Kia's retail sales rose 2.2% to 141,000 vehicles. Strong sales of electric vehicles and the new Seltos contributed to the increase. Kia's market share reached 36.8%, up 4.6 percentage points from the same period last year and a record high for a quarter.

In the United States, local sales rose 7.8% to 234,000 vehicles even as industry demand fell 1.3%. Sales were supported by the Telluride Hybrid and hybrid models of key vehicles such as the Sportage and Carnival. Kia's U.S. market share was 5.8%, a record high for a quarter.

Sales in Western Europe increased 16.9% year over year to 145,000 vehicles, driven by the launch of affordable electric vehicles and their price competitiveness. Sales in India also rose 38.5% to 89,000 vehicles, supported by the new Seltos, Sorento, and Syros EV. Kia's global market share for the first three quarters of this year was 4%, up 0.4 percentage points from the same period last year.

Revenue growth was largely driven by an improvement in average selling prices (ASP), as hybrid and electric vehicle sales increased in major markets. Operating profit reflected adjustments to U.S. automotive tariffs, higher sales, and favorable exchange rates. Kia said that the U.S. automotive tariff rate was reduced from 25% to 15%, resulting in a base effect of about 530 billion won. The profit impact of higher sales volume was about 442 billion won, while the exchange-rate impact was about 529 billion won.

However, rising raw material prices and prolonged conflicts in the Middle East weighed on profitability. According to Kia, rising raw material prices reduced operating profit by about 368 billion won, while the effects of the conflict in the Middle East reduced it by about 209 billion won. Incentives and price cuts to boost electric vehicle sales also weighed on profit by about 727 billion won.

Various electric vehicles, including the Kia PV5 and EV3, are on display at EV Trend Korea 2026, held on the 25th at COEX in Gangnam-gu, Seoul. 2026.8.25. Photo by Kang Jinhyung.

Kia said retail sales of electrified vehicles (xEVs) in the third quarter rose 47% year over year to about 300,000 vehicles. Electrified vehicles accounted for 36.2% of total sales, an increase of 9.8 percentage points. Electric vehicle sales rose 75.4% to 123,000 vehicles, while hybrid vehicle sales increased 46% to 172,000.

Electric vehicle sales grew particularly strongly in Western Europe and South Korea. Sales in Western Europe reached 63,000 vehicles, accounting for about half of Kia's total electric vehicle sales. The share of electric vehicles in Kia's sales in the region climbed to 43.2%, up sharply from 19.2% in the same period last year. Domestic electric vehicle sales totaled 23,000 vehicles, and their share of sales rose to 23% from 14.9%.

Hybrid vehicle sales drove growth in the United States. Kia's U.S. hybrid sales in the third quarter rose 118% year over year to 69,000 vehicles, far exceeding the market's growth rate of 27%. As a result, Kia's share of the U.S. hybrid market rose 4.4 percentage points from the same period last year to 10.6%. This marked the first time Kia had recorded a double-digit share since entering the U.S. hybrid market in 2011.

Kia plans to expand hybrid sales in South Korea and the United States in the fourth quarter and increase electric vehicle sales in Western Europe. In South Korea, the company will focus on sales of the Seltos Hybrid and the Sorento and Carnival hybrids. In the United States, it plans to launch the Seltos Hybrid. In Western Europe, Kia aims to use its full electric vehicle lineup to increase annual electric vehicle sales by 79% from last year and raise electric vehicles' share of total sales to 33%.

Jung Sung-kuk, Kia's executive vice president in charge of IR and strategic investment, said, "If external factors such as rising raw material prices and instability in the Middle East ease, we will quickly restore profitability, supported by the solid competitiveness of our finished vehicle business."

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