South Korean automaker Kia Corporation reported a 37% year-on-year drop in net profits to KRW 1.42 trillion (US$ 997 million) in the third quarter of 2025, attributed mainly to the introduction of a 25% import tariff by the US government earlier this year.
Operating profit plunged by 49% to KRW 1.46 trillion, with the company’s operating margin falling to 5.1%, with the results also affected by higher incentive payments and currency exchange rates. The company confirmed that the third-quarter results “were affected by US tariffs on imported vehicles, higher global incentives and an increase in the value of dollar-denominated debt when converted into won.”
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Global revenues rose by 8.2% year-on-year to KRW 28.69 trillion during the quarter, helped by an improved product mix including a 32% rise in hybrid and electric vehicle sales to 204,000 units, while overall sales volumes increased by just 2.8% to 785,137 vehicles.
Kia pointed out that despite strong EV3 sales, deliveries in Europe declined due to model discontinuations and temporary production adjustments at the Slovakia plant as part of its “electrification transition,” adding that “sales in India dipped due to deferred demand ahead of the Good and Services Tax (GST) reduction which was implemented at the end of September.” In the US, the company reported record sales of 219,637 units during the quarter.
In the first nine months of 2025, global revenues rose by over 7.2% year-on-year to KRW 86.05 trillion, while operating profit dropped by 27% to KRW 7.24 trillion and net income was down by 24% to KRW 6.08 trillion.
Kia said in a statement that it “anticipates that global trade uncertainties, including tariffs, will continue to pose risks to profitability. The company remains committed to expanding its global presence by offering more hybrid models and accelerating its growth through a full EV lineup. In the Korean market, Kia aims to continue expanding sales through hybrid models for RVs and entering the new segment following its first pickup truck Tasman. The company is also committed to maintaining sales momentum by expanding its EV lineup with the upcoming launch of the EV5 and PV5 models.”
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By GlobalDataThe company further stated: “In the US, Kia plans to leverage its flexible production system to respond to market demand and regulatory changes, while expanding the hybrid line-ups of popular models in line with the industry-wide demand. In Europe, Kia will expand its EV line-up with models such as EV4, EV5, and PV5, while in India, the company will maintain sales momentum with Syros SUV, launch the fully redesigned Seltos SUV, and strengthen its dealer network.”
