South Korean automaker Kia Corporation announced a 23.5% drop in net profits to KRW 1.83 trillion (US$ 1.24 billion) for the first quarter of 2026, from KRW 2.39 trillion a year earlier, which it blamed mainly on the introduction of import tariffs in the US last year.

Operating profits plunged by almost 27% to KRW 2.21 trillion won in this period, with the company estimating that the introduction of import tariffs by the Trump administration in the US cost it KRW 755 billion in additional expenses.

Kia reported a 5.3% increase in global sales revenues to a record KRW 29.5 trillion in the first three months of 2026, while global wholesale deliveries rose by just under 1% to 779,741 vehicles – including 141,000 units in South Korea and 638,000 units overseas.

The company estimates that its share of global vehicle retail sales hit a record high of 4.1%, driven by a 33% rise in electrified vehicles, including battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs)s, to 232,000 units – accounting for almost 30% of Kia’s total sales. HEV sales rose by 32% to 138,000 units, while BEV sales surged by 54% to 86,000 units.

The company said in a statement: “Despite short-term costs, particularly US import tariffs, we continue to expand our global market share and pursue higher-margin growth with eco-friendly vehicles. We aim to maintain profitability through continued efforts to improve our sales mix, by focusing on high-value-added vehicles, and by reducing costs."