Hyundai Motor affilate Kia Motors, like its parent, has reported record-high earnings for 2011 thanks to its upgraded brand image and strong sales growth in overseas markets.
The automaker posted about KRW3.5 trillion won (US$3billion) in net profit in 2011, up 30% year on year as vehicle sales rose 20.6% to KRW43.2 trillion and operating profit jumped 41.6% to KRW3.5 trillion.
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“We recorded the handsome results, buoyed by enhanced market competitiveness despite the Eurozone debt crisis and global economic slowdown,” a spokesman told the Korea Herald, adding that new quality cars have strengthened Kia’s brand image and fueled the sales increase – 19.2% to about 2.53m units worldwide in 2011.
US sales, some produced locally in Georgia, were up 36.3% to 485,000 vehicles while sales in China, where Kia also has a plant, rose 29.9% to 433,000 cars.
But domestic sales rose just 1.7% to 492,000 vehicles due to lower-than-expected demand and fourth quarter net income dipped 3.5% to KRW790.3bn.
Sales climbed 8.7% to KRW10.9 trillion on sales of 684,770 vehicles with operating profit up 16.8% to KRW825.8bn during the September-December period.
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By GlobalDataKia plans to sell over 2.7m vehicles this year, up 9.5%, with 500,000 units of those targeted for Korea were the market is forecast to grow 2.2%. The 9.5% growth forecast contrasts with the 19% rise to 2.48m in 2011.
It has targeted US growth of 10% to 534,000 vehicles and 22.6% growth in Europe to 356,000 vehicles helped by the release of the new Slovak-made C-segment Ceed and expanded Rio B-segment line.
In overseas markets, where Kia sells eight out of 10 cars, it expects stiffer competition from General Motors, Toyota and Honda, a company official told the Wall Street Journal.
