April 23, 2024

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[THE INVESTOR] Kia Motors, South Korea’s No.2 carmaker, is looking to sell 35,000 units of its new subcompact hybrid SUV Niro in the US, once it will be launched in the first half of this year. 

“Prior to launching Niro, we will run a commercial at the Super Bowl in February to raise awareness,” Han Chun-soo, Kia’s chief financial officer, said during a conference call after the automaker’s fourth-quarter earnings report. “We will promote Niro’s outstanding fuel economy in the competitive US SUV market.”

The automaker said it will focus on expanding its SUV lineup in the US in response to increasing SUV demand in the country. Kia plans to sell 699,000 units in the US this year, a 50,000 unit-hike from last year’s 648,000 units, by launching compact SUV Niro and Stinger sedan.

During a conference call on Jan. 26, Kia said its fourth-quarter operating profit increased 3.5 percent to 532.2 billion won (US$459.88 million) on-year, on the back of new car launches and popularity of sport utility vehicles. 

Revenue gained 1 percent to 12.91 trillion won during the cited period, while net profit declined 25.7 percent to 320 billion won on-year.
As for all of 2016, operating profit increased 4.6 percent to 2.46 trillion won. Annual revenue increased by 6.4 percent to reach 52.71 trillion won, the first time the automaker passed 50 trillion won mark. Net income also gained 4.7 percent to 2.75 trillion won.

In total, Kia sold 3.01 million units in Korea and overseas last year, up 1 percent from the previous year.

By Ahn Sung-mi (sahn@heraldcorp.com)