Kia, the automaker, announced a notable 32.5% surge in net profit for the first quarter of the year, bolstered by heightened sales of SUVs, minivans, and hybrid vehicles.
In a regulatory filing, the company revealed a consolidated net profit of 2.8 trillion won ($2 million) for the period spanning January to March, marking a significant increase from the 2.1 trillion won reported during the same period last year.
The upswing in overseas sales was a key driver, particularly in major markets like North America and Europe. However, Kia noted a decline in sales in certain emerging markets such as India and the Middle East, attributed to factors like aging vehicle models and geopolitical tensions.
Despite anticipating challenges stemming from geopolitical risks, sluggish economic growth, and subdued consumer confidence due to high interest rates and inflation, Kia exceeded market expectations. Analysts had estimated a net profit of 2.24 trillion won, according to a survey conducted by Yonhap Infomax.
Despite a marginal decrease in the total number of vehicles sold, Kia's performance improved year-on-year. Domestic sales in South Korea stood at 137,871 units, while overseas shipments reached 622,644 units, resulting in a combined total of 765,515 units sold, representing a slight 1% decline from the previous year.
Kia attributed its enhanced performance to a rise in the average selling price, driven by an expanded range of eco-friendly vehicles including hybrids, SUVs, and minivans. Notably, the company witnessed an uptick in sales of hybrid units (93,000 units) and electric vehicles (44,000 units), marking increases of 30.7% and 7.9% respectively compared to the previous year.
Looking ahead, Kia intends to leverage new and high-profit models like the Carnival hybrid and K4 to maintain profitability in the US market. Additionally, in Europe, the company plans to bolster its electric vehicle lineup to reinforce its position as a frontrunner in the competitive EV segment.
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