Kia announces 2Q 2021 business results

2Q global sales totaled 754,117 units from 516,050 units a year earlier

Kia Corporation today announced 2021 second-quarter business results, reporting a quarterly revenue of KRW 18.34 trillion from KRW 11.37 trillion in the same period last year. Continued recovery in global auto demand, alongside strong sales of the company’s RV models such as the Sorento SUV and Carnival minivan led the solid results despite unfavorable exchange rates.

In the April-June period, Kia sold 754,117 units across global markets, a 46.1 percent increase compared to the same period last year. Sales outside of Korea saw a 70.9 percent increase to 605,808 units.

Markets such as Europe, India, and South America showed a strong rebound in demand compared to the same three-month period last year when markets were hit hard by pandemic-related lockdowns. Sales also recovered in the U.S. supported by the ongoing market recovery and strong demand for Kia’s new models, such as the Sorento SUV and Carnival minivan. Sales in Korea decreased 8.2 percent to 148,309 units.

Kia’s second-quarter operating profit rose to KRW 1.49 trillion from KRW 145.2 billion, with an operating profit margin of 8.1 percent. The company also recorded a net profit (including non-controlling interest) of KRW 1.34 trillion from KRW 126.3 billion in the second quarter last year.

The strong performance was supported by Kia’s enhanced product mix as well as the ongoing success of the brand’s higher-margin RV models, including Telluride, Seltos, and Sorento SUVs and the Carnival minivan. Sales of Kia’s RV models accounted for 56.5 percent of the total sales volume, a 2.8 percentage points increase from the same period last year.

Kia anticipates automobile demand to continue improving alongside the ongoing economic recovery from the global pandemic. However, possibilities of lingering impacts of COVID-19 and the ongoing supply issues of semiconductor parts as well as raw material cost fluctuations leave persistent concerns within the industry.

Especially regarding the global supply issues of semiconductor parts, Kia anticipates the shortage to continue in the third-quarter of 2021, and that it will take to some time for the situation to fully normalize.

Accordingly, the company is taking preemptive measures to minimize business risks. In terms of chip supply, Kia will flexibly adjust its production plans in line with supply status and preemptively secure its component inventory with sufficient orders for a year while looking for alternative chip parts to minimize impact on its output.

The company will also proactively expand local components production, diversify its supply chain, and strengthen cooperation with various semiconductor partners to prevent the components shortage from worsening.

Despite tough market situations, Kia will continue to focus on improving sales momentum and profitability through new models, including the EV6 battery electric vehicle and recently unveiled all-new Sportage SUV.

(Revenue / Operating Profit / Net Profit unit: Billion KRW)

2021 2Q2020 2QY/y Change
Vehicle sales (Units)754,117516,05046.1%
Korea148,309161,548-8.2%
Sales outside of Korea605,808354,50270.9%
Revenue18,339.511,368.861.3%
Operating profit1,487.2145.2924.5%
Net profit1,342.9126.3963.2%

* Net Profit includes non-controlling interest
* Under K-IFRS

SOURCE: Kia

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