Automaker hits all time high global sales of 3.1 million units
Kia, Hyundai Motor Group’s smaller affiliate, set a major milestone last year, marking record-high sales and profits, even amidst a downturn in the electric vehicle market and economic uncertainties.
According to the company’s earnings release on Friday, last year’s sales revenue and operating profit soared 7.7 percent and 9.1 percent compared to 2023 to 107.4 trillion won and 12.7 trillion won ($8.9 billion), respectively. This single-handedly exceeded the annual targets of 101.1 trillion won in revenue and 12 trillion won in profit. Its operating profit margin achieved a historic high of 11.8 percent, maintaining a double-digit figure for the second consecutive year and surpassing the industry average of 6 percent.
Kia also recorded the highest-ever annual global sales of 3.1 million units, a 0.1 percent increase from the previous year, though slightly below the target of 3.2 million units. Sales surged in major automotive markets, including North America, the Middle East and Asia-Pacific. Notably, the US sales increased 19.4 percent compared to 2023, led by the new hybrid variant of the Carnival sport utility vehicle as well as the Sportage and Telluride SUVs. On the other hand, Europe’s sales dipped 6.9 percent due to cuts in EV consumer subsidies, while the Indian market witnessed a 12.3 percent drop, attributed to outdated car models.
The carmaker’s stellar performance comes after the boost in sales of profitable recreational vehicles and diversified powertrain lineups, which offset the incentive costs and warranty expenses incurred by a rise in won-dollar exchange rate sparked by Korea’s martial law crisis in December 2024.
Kia’s eco-friendly vehicle sales grew to 638,000 units from October to December. Hybrid sales marked a 20 percent on-year surge to 367,000 units, including the Carnival SUV and K8 sedan. The all-electric models' sales increased 10.2 percent to 201,000 units.
For this year, Kia aims to sell 3.2 million vehicles and reach 112.5 trillion in revenue, 12.4 trillion in profit and an 11 percent operating margin, thereby continuing its three-year streak of double-digit margins.
Jung Sung-guk, managing director of investor relations at Kia, addressed the Donald Trump administration’s proposed universal tariffs on goods produced outside the US during a conference call later in the day. “Uncertainties loom over Kia’s Mexican plant, which manufactures 120,000 units (annually) of the K4 sedan and ships to the US. Should Mexico face trade sanctions, we are considering redirecting exports to Canada or shifting engine production to our plant in Alabama to reduce costs.”
Kia’s new car launches for 2025 include the Tasman, its first pickup truck, with a sales target of 40,000 units. The Syros SUV primarily targets India and is projected to sell 80,000 units. The PV5, the company’s first customized, purpose-built vehicle, is expected to sell between 10,000 and 20,000 units. Completing the lineup are the EV 4 and EV 5, all-electric entry-level models, each with an anticipated sales volume of 30,000 to 40,000 units.
Meanwhile, Hyundai Motor Company failed to meet its annual guidance on profit of 16.3 trillion won last year. While its revenue rose 7.7 percent to 175.2 trillion won from the previous year, its profit plummeted 5.9 percent to 14.2 trillion won. The company’s profit margin also dropped from 9.3 percent to 8.1 percent during the same period.
By Byun Hye-jin (hyejin2@heraldcorp.com)
