Kia Surpasses 100 Trillion Won in Sales for the First Time... "Sustained Double-Digit Operating Profit Margin" (Comprehensive)

Sales Reach 107 Trillion Won, Operating Profit 12 Trillion Won
Record-High Operating Margin and Sales Volume
"Product Competitiveness Over Incentives"

Kia recorded its highest-ever sales and operating profit last year. Sales surpassed 100 trillion won for the first time since the company's founding.

Kia expressed confidence in maintaining a double-digit operating profit margin this year as well, thanks to differentiated competitiveness driven by product mix and average selling price (ASP) improvements.

Song Hoseong, President of Kia. Photo by Kang Jinhyung aymsdream@

Increase in eco-friendly vehicle sales... "Diversified response effective against electric vehicle chasm"

On the 24th, Kia announced during a conference call that it recorded consolidated sales of 107.4488 trillion won and operating profit of 12.6671 trillion won, marking an all-time high. These figures represent increases of 7.7% and 9.1% respectively compared to the previous year. Operating profit benefited from approximately 1.465 trillion won in foreign exchange gains due to a 4.5% rise in the won-dollar exchange rate last year. The operating profit margin rose by 0.2 percentage points year-on-year to 11.2%.

Annual sales volume reached 3,089,300 units, a 0.1% increase from the previous year. Sales of eco-friendly vehicles totaled 638,000 units, and hybrid vehicles 367,000 units, driving revenue growth. These represent increases of 10.9% and 20% respectively compared to the previous year. Electric vehicle sales rose by 10.2% to 201,000 units. The share of eco-friendly vehicles increased by 2.3 percentage points year-on-year to 21.4%.

Seungjun Kim, Head of the Finance Division, evaluated, "Last year, Kia and Hyundai’s unique diversification shone by swiftly responding to industry changes such as the electric vehicle chasm (temporary demand stagnation) and increasing hybrid sales."

Last year's fourth-quarter performance was also strong. Total sales reached 769,985 units, including 140,934 units domestically and 629,051 units overseas. Sales and operating profit were 27.1482 trillion won and 2.7164 trillion won respectively, up 11.6% and 10.2% compared to the same period last year.

Kia Yangjae Headquarters Building. Photo by Hyunmin Kim kimhyun81@

"Sales target of 3.21 million units this year... Preparing for Trump tariff risk"

Kia set its annual sales target for this year at 3,216,000 units, a 4.1% increase from last year. Annual sales are projected to rise 4.7% to 112.5 trillion won during the same period. Operating profit is forecasted at 12.4 trillion won, with an annual operating profit margin of 11%.

Kia stated, "Despite external uncertainties, we are confident in maintaining a double-digit operating profit margin this year by leveraging fundamental competitiveness through product mix and average selling price (ASP) improvements."

Kia plans to continue expanding sales of eco-friendly vehicles such as hybrids and EVs in major markets including North America and Europe this year. New models include the first pickup truck, the Tasman, the India strategic model Cyrus, and the purpose-built mobility (PBV) PV5. The sedan-type electric vehicle EV4 will be sequentially launched worldwide, and the compact SUV EV5 will be introduced domestically to establish a 'mass-market EV full lineup.'

However, the 25% additional tariff on Mexico imposed by the second Trump administration is considered a risk. Kia produces 120,000 units of the 'K4' at its Mexico plant. Regarding this, Head Kim said, "There are many uncertainties," but added, "We are preparing through price increases and production location adjustments." While there will be additional short-term burdens equivalent to the imposed tariffs, the long-term impact is expected not to be significant enough to damage profitability.

Furthermore, Kia expressed determination to increase sales in markets excluding North America this year without increasing incentives. In North America, unlike other regions, there are no new models, so incentives will be used to boost sales. However, in markets with many new model launches, sales growth is expected without an increase in incentives.

Meanwhile, Kia will pay an annual dividend of 6,500 won per share this year, an increase of 900 won compared to last year (5,600 won). The company expanded its share buyback and cancellation amount by 200 billion won to 700 billion won compared to the previous year. Shares repurchased for shareholder value enhancement will be 100% canceled unconditionally starting this year. According to the recently announced value-up program, the total shareholder return (TSR, including dividends and share buybacks/cancellations) is expected to reach 33.3% in 2024. This year, Kia plans to expand TSR to 35%.

Kia stated, "We will continue to strengthen our co-growth policy that pursues both management performance and shareholder profit return simultaneously," and added, "The 'CEO Investor Day' for active communication with shareholders and investors will be held in early April."