December 04, 2024

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From left: Kia's EV6, Concept EV4, EV5, EV3 and EV9 (Hyundai Motor Group)

Kia logged another record profit in the second quarter on Friday, driven by an enhanced product mix, higher average selling price and favorable exchange rates.

During the April-June period, Kia achieved two new records -- 3.64 trillion won ($2.63 billion) in operating profit and a 13.2 percent operating profit margin -- in second-quarter earnings, continuing to break records for two straight quarters.

The automaker’s quarterly operating profit increased by 7.1 percent in comparison to the same period last year. Kia sold 795,183 vehicles across the globe, down 1.6 percent on year, and logged 27.57 trillion won in revenue, up 5 percent on year, between April and June this year.

Despite selling fewer vehicles in the same period last year, Kia said increased profitability was due to an improved product mix centered on high-value-added models, a higher average selling price, stabilized prices of raw materials, favorable exchange rates and a lower level of incentives.

Kia pointed to the strong sales in the North American region where strong demands led to an enhanced sales proportion of recreational and electric vehicles. The automaker sold 162,000 eco-friendly vehicles worldwide including hybrid, plug-in hybrid and all-electric vehicles, up 8.3 percent on year. Kia attributed the increased sales of eco-friendly vehicles to the strong demand for hybrid models and the market rollout of the EV9, the brand’s electric three-row sport utility vehicle.

Kia’s eco-friendly vehicles accounted for 21.4 percent of the company’s total sales in the second quarter, increasing by 2.5 percentage points. The automaker’s EV sales jumped by 21.8 percent on year to 54,000 units.

Looking forward into the second half, Kia reiterated that it will aim to lead EV popularization with the launch of the EV3, the company’s newest all-electric vehicle, and the EV6 product enhancement model. The EV3, which has already been released in Korea, is expected to hit the global market including Europe in the second half of this year.

Kia plans to release the facelift model of the K8 sedan in Korea later this year. In the US, the automaker said it will aim to keep improving sales volume and profitability through the launch of new models such as the facelifted Sorento Hybrid SUV, the Carnival Hybrid multi-purpose vehicle and the K4 compact sedan.

“We anticipate that global market uncertainties will persist with ongoing geopolitical risks, high interest rates and inflation,” said Kia.

“The company is closely monitoring the changing automobile market, including elements such as intensifying competition and the adjustment of the EV adoption stage. We plan to maintain optimal inventory levels through flexible production operations based on market demands while continuing its business operations, centered on profitability and customer value.”

By Kan Hyeong-woo (hwkan@heraldcorp.com)