Kia Corporation today announced its 2024 first quarter business results.
For the first quarter of 2024, Kia recorded global sales of 760,515 units, a one percent decrease year over year. The company’s quarterly revenue increased 10.6 percent to KRW 26.21 trillion. Operating profit climbed to KRW 3.43 trillion, up 19.2 percent compared with the same period last year, with an operating profit margin of 13.1 percent. The company also recorded a net profit of KRW 2.81 trillion, including non-controlling interest, an increase of 32.5 percent.
Quarterly sales slightly decreased compared to the same period last year, due to the adjustment of the EV adoption phase and temporary supply shortage of ICE and HEV models. The company’s profitability still expanded due to stabilized raw material prices, favorable exchange rates, and improved product mix centered on high-value-added models.
Kia’s Q1 business results
In the first quarter of 2024, Kia reported global sales of 760,515 units, a one percent decrease from a year earlier. Sales outside Korea stood at 622,644 units, a 0.6 percent decrease year over year, with sales in Korea of 137,871 units, a 2.9 percent decrease.
Despite sales decreasing in certain emerging markets due to geopolitical risks, the strong demand in major regions such as North America, Europe, and China led the company’s year-over-year sales outside of Korea. Sales in Korea declined slightly compared with the same period last year as the expiry of temporary tax breaks on vehicle purchases damped consumer demand as well as the reduced sales of EV models.
The company posted first quarter revenue of KRW 26.21 trillion, an increase of 10.6 percent compared with the same period a year earlier. Kia’s first quarter revenue was supported by increased vehicle average selling price (ASP), enhanced sales of high-value-added RV and HEV models, and more favorable exchange rates.
The same factors, as well as stabilized raw material prices, saw Kia’s first quarter operating profit increase 19.2 percent to KRW 3.43 trillion, the company’s highest quarterly operating profit ever. As a result, Kia’s operating profit margin rose to 13.1 percent, also the company’s highest quarterly operating profit margin since its last record of 13 percent in the second quarter of 2023.
Sales of electrified models
In the first quarter of 2023, Kia recorded global retail sales of 157,355 electrified vehicles, including hybrid, plug-in hybrid, and all-electric models, representing an 18.1 percent increase from a year earlier. In addition, as a proportion of the company’s total sales, Kia’s electrified models increased by 3.5 percentage points to a 21.6 percent share in the first quarter.
This increase was driven by strong demand for self-charging hybrid vehicles, which recorded sales of 93,424 units, a 30.7 percent increase, while plug-in hybrids saw 20,021 units sold, a five percent decrease year over year. The company’s EV sales increased 7.9 percent to 43,910 units.
In Korea, sales of electrified models accounted for 41.2 percent of quarterly vehicle sales, with the proportion standing at 40.9 percent and 15.8 percent for Western Europe countries and the U.S. respectively.
Future outlook
Kia anticipates global market uncertainties will persist in 2024, with ongoing geopolitical risks, high interest rates and inflation. The company is also closely monitoring the changing automobile market, including elements such as intensifying competition and the adjustment of the EV adoption stage. The company plans to maintain optimized inventory levels through flexible production operations based on market demands, while continuing its business operations centered on profitability and customer value.
Kia plans to continue to expand sales in Korea with its hybrid models, including the Sorento, Sportage SUV, and Carnival MPV, and continue its sales momentum through the successful launch of the all-electric new EV3 and EV6 PE model in the second half of the year.
In the U.S., Kia plans to maintain optimal incentive levels through demand-based production operations, while continuing to improve profitability by utilizing new and high-value-added models such as the Carnival Hybrid MPV and K4 compact sedan.
In Europe, the company plans to focus on growing sales centered on EVs as well as expanding its EV lineup through the successful launch of the EV3, strengthening its image as a leading EV brand.
Through such plans, Kia is aiming for global sales of 3.2 million units in 2024, a 3.6 percent increase over 2023. Kia also recently presented a strategic roadmap to lead the global electrification era through EVs, HEVs and PBVs at the company’s 2024 CEO Investor Day.
(Revenue / Operating Profit / Net Profit unit: Billion KRW)
| 2024 | 2023 | |||||
| Q1 | Q1 | |||||
| Vehicle Sales (Units) | 760,515 | 760,515 | 768,251 | 768,251 | ||
| Korea | 137,871 | 137,871 | 142,016 | 142,016 | ||
| Outside of Korea | 622,644 | 622,644 | 626,235 | 626,235 | ||
| Revenue | 26,212.9 | 26,212.9 | 23,690.7 | 23,690.7 | ||
| Operating Profit | 3,425.7 | 3,425.7 | 2,874.0 | 2,874.0 | ||
| Net profit | 2,809.1 | 2,809.1 | 2,119.8 | 2,119.8 | ||
* Net Profit includes non-controlling interest
* Under K-IFRS
SOURCE: Kia
