Sales Revenue Rises 8.2% Year-on-Year to 28 Trillion Won
SUV Sales Expand, Led by Sorento
"Accelerating Growth to Meet Eco-Friendly Vehicle Demand"
Kia announced on the 31st that its operating profit for the third quarter was 1.4622 trillion won, a 49.2% decrease compared to the same period last year. The company attributed the significant decline to the impact of U.S. tariffs and increased incentives due to intensified competition in major markets.
Revenue reached 28.6861 trillion won, an 8.2% increase from the same period last year, while net profit for the period was 1.4225 trillion won.
Kia stated, “We achieved the highest-ever third-quarter sales and revenue, driven by continued growth in global hybrid demand and expanding electric vehicle sales.” The company added, “Profitability weakened due to the full impact of U.S. tariffs, a global increase in incentives, and valuation losses on provisions caused by a sharp rise in year-end exchange rates.”
Kia sold 785,137 units in the third quarter, a 2.8% increase year-on-year. In the domestic market, sales rose 10.2% to 138,009 units, while overseas sales grew 1.4% to 647,128 units compared to the previous year.
In the domestic market, sales growth was driven by increased sales of high-profit recreational vehicles (RVs) such as the Sorento and Carnival, as well as the launch effect of the new EV4. Overseas, demand continued to rise in North America, particularly in the United States, and Kia expanded sales volumes in emerging markets such as Asia-Pacific and Central and South America, maintaining its growth momentum.
In Western Europe, despite strong sales of the EV3, overall sales declined due to the discontinuation of certain models and temporary production adjustments at the Slovakia plant as it transitioned to electrification. In India, sales decreased due to pent-up demand ahead of the reduction in the goods and services tax implemented at the end of September.
The cost of sales ratio rose by 4.3 percentage points year-on-year to 81.1% due to the impact of U.S. tariffs, while the selling and administrative expense ratio increased by 1.5 percentage points to 13.8% due to higher warranty and research and development (R&D) costs. The operating margin stood at 5.1%.
Sales of eco-friendly vehicles rose 32.3% year-on-year to 204,000 units, driven by strong hybrid demand in the United States and robust electric vehicle demand in Western Europe. The proportion of eco-friendly vehicles in total sales also increased by 5.4 percentage points to 26.4% compared to last year. Of these, hybrids accounted for 118,000 units (40.9%), plug-in hybrids 17,000 units (-2.6%), and electric vehicles 70,000 units (30.0%).
Kia plans to expand its market dominance by accelerating growth through an expanded hybrid lineup and a new electric vehicle launch cycle, in line with the growing trend in eco-friendly vehicle demand. Domestically, the company will continue to increase hybrid sales, mainly in the RV segment, and leverage the momentum of new models such as the EV5 and PV5 to further expand the share of eco-friendly vehicles.
In the United States, Kia aims to actively utilize a flexible production system in response to market demand and regulatory changes, while expanding hybrid lineups for popular models in line with the strong industrial demand for hybrids. In Europe, the company will broaden its electric vehicle lineup with models such as the EV4, EV5, and PV5. In India, Kia plans to maintain momentum with new models like the Sonet, launch a fully redesigned Seltos, and continuously expand its dealer network to strengthen sales and service coverage.
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