SEOUL, October 31 (AJP) - South Korean automaker Kia reported a steep drop in quarterly profit despite record revenue and global sales, Friday, as higher tariffs and currency fluctuations eroded margins in key markets.
The company said its operating profit for the third quarter fell 49.2 percent from a year earlier to 1.46 trillion won ($1.06 billion), even as revenue climbed 8.2 percent to 28.69 trillion won. Net profit declined 37.3 percent to 1.42 trillion won.
“Despite record sales and revenue driven by rising global demand for hybrid and electric vehicles, profits were affected by U.S. tariffs, higher global incentives and exchange rate volatility,” Kia said in a press release.
Global sales rose 2.8 percent from a year earlier to 785,137 vehicles. Domestic sales jumped 10.2 percent, led by high-margin recreational vehicles such as the Sorento and Carnival and the new EV4. Overseas deliveries increased 1.4 percent, supported by strong hybrid demand in the United States and higher sales in emerging markets in Asia and South America.
In western Europe, production adjustments at Kia’s Slovakia plant offset solid demand for the EV3, while sales in India fell as buyers delayed purchases in anticipation of a possible reduction in the goods and services tax.
Eco-friendly vehicles accounted for more than a quarter of total sales, rising 32.3 percent to 204,000 units. The company sold 118,000 hybrids, up 40.9 percent; 17,000 plug-in hybrids, down 2.6 percent; and 70,000 fully electric vehicles, up 30 percent.
Kia said it plans to expand its hybrid lineup and introduce new electric models to reinforce its position in the global market amid trade and policy uncertainties.
In South Korea, the company will focus on high-margin hybrid RVs and the upcoming EV5, while in the United States it plans to broaden its hybrid offerings to meet shifting regulatory and consumer trends.
In Europe, Kia aims to strengthen its EV portfolio with new models, and in India, it intends to grow its dealer network and introduce additional vehicles, company officials said.
* This article, published by Aju Business Daily, was translated by AI and edited by AJP.
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