Kia recorded its highest-ever revenue in the first quarter of this year. However, despite the increase in sales, profitability worsened due to factors such as an increase in incentives.
Kia announced on the 25th that its revenue in the first quarter reached 28.175 trillion won, up 6.9% compared to the same period last year, while its operating profit decreased by 12.2% to 3.086 trillion won. Its net profit for the period was reported to be 2.3926 trillion won, down 14.8%.
Kia recorded its highest-ever revenue on a quarterly basis amid sustained demand for high-value models such as hybrids (HEVs) and pre-purchase demand in the U.S. market ahead of tariff application, along with strong sales in emerging markets like India.
However, despite growth in sales and favorable exchange rates, operating profit declined as the growth of electric vehicle demand slowed and competition intensified in overseas markets, leading to an increase in incentives.
In the first quarter, Kia's sales totaled 134,564 units in the domestic market, a decrease of 2.4% compared to the previous year, while overseas sales increased by 2.5% to 638,084 units. Overall, in the global market, Kia sold 772,648 units, reflecting a 1.6% increase.
Fueled by hybrid demand, eco-friendly vehicle sales increased by 10.7%, reaching 174,000 units, and the share of eco-friendly vehicles in total sales rose by 1.5 percentage points (P) to 23.1%.
A Kia official noted, "Although operating profit has decreased, with an operating profit margin of 10.7%, it is more than twice the average of major automakers (5%)," adding that "it has maintained operating profits of over 2 trillion won for 10 consecutive quarters since the fourth quarter of 2022."