Kia Corporation today announced its 2021 first-quarter business results, reporting a 13.8 percent year-on-year rise in quarterly revenue to KRW 16.58 trillion. Despite unfavorable exchange rates, the company’s improved product mix and strong performance of key models such as Telluride and Seltos SUVs contributed to higher revenue.
During the January to March period, Kia sold 689,990 units across global markets, a 6.4 percent increase compared to the same period last year. Sales in Korea rose 11.4 percent to 130,075 units, with robust sales of the company’s new models, including the new Sorento SUV, and Carnival minivan, behind the increase.
Sales outside of Korea also saw a 5.3 percent increase to 559,915 units, with recoveries of demand in global markets, alongside significant growth in India. The Sonet SUV alone sold over 25,000 units in India during the first three months, contributing to a 38.3 percent year-on-year increase of Indian sales.
The company’s first-quarter operating profit more than doubled from a year earlier to KRW 1.08 trillion, with an operating profit margin of 6.5 percent. The company’s net profit also soared to KRW 1.04 trillion, up 289.2 percent during the same period.
The strong performance was supported by Kia’s enhanced global product mix as well as the ongoing success of the brand’s high-margin RV models, including Telluride, Seltos, and Sorento SUVs and the Carnival minivan. Sales of Kia’s RV models accounted for 59.7 percent of the total sales volume, the highest ever RV share and a 6.4 percentage points increase from the same period last year.
For 2021, Kia is targeting global sales of 2.92 million units, a 12.1 percent increase compared to 2020 global sales volumes. The company is targeting domestic sales of 535,000 units and 2.39 million units for sales outside of Korea.
Kia anticipates automobile demand to improve alongside the ongoing economic recovery from the global pandemic. However, possibilities of lingering impacts of COVID-19 and the supply issues of semiconductor parts are likely to leave growing uncertainties in the industry. Accordingly, the company is taking preemptive measures to minimize business risks.
In terms of chip supply issues, the company will flexibly adjust its production plans in line with supply status and preemptively secure its component inventory while looking out for alternative semiconductor parts to minimize impact on its output.
Despite tough market situations, Kia will also continue to focus on implementing its mid- to long-term business strategy ‘Plan S’, as well as improving sales momentum and profitability through new models, including the brand new K8 sedan and the company’s first dedicated electric vehicle, EV6.
(Revenue / Operating Profit / Net Profit unit: Billion KRW)
|2021 1Q||2020 1Q||Y/y Change|
|Vehicle sales (Units)||689,990||648,685||6.4%|
|Rest of the world||559,915||531,946||5.3%|
* Net Profit includes non-controlling interest
* Under K-IFRS
A. The above results are tentative consolidated business results under “Korean International Financial Reporting Standards (K-IFRS)”
B. The above results are preliminary and unaudited. Figures are subject to change after official audit.
C. The above sales volumes are based on wholesales.
D. For further information, please refer to the company website