South Korean automaker Kia Corporation reported a 6.9% increase in global revenues to KRW 28.02 trillion in the first quarter of 2025, representing its highest-ever quarterly revenue. The improvement was underpinned by strong global sales, higher average selling prices and favorable exchange rates.

Kia said its operating profit fell by 12.2% year-on-year to KRW 3.01 trillion in the three-month period, equivalent to an operating margin of 10.7%, which it attributed to incentives carried through from 2024 and slowing demand growth. This offset the benefits of its strong product mix, which is increasingly focused on high-margin and high-value-added models, as well as stable raw material costs and favorable exchange rates.

Kia pointed out that the first quarter of 2025 was the tenth consecutive quarter with an operating profit margin of over 10%, since the fourth quarter of 2022. Net profit dropped by 14.8% to KRW 2.39 trillion, including non-controlling interests.

Kia reported a 1.6% increase in first-quarter global vehicle deliveries to 772,648 units from 760,514 a year earlier, with sales in South Korea falling by 2.4% to 134,564 units while overseas sales increased by 2.5% to 638,084 units.

Global sales of electrified vehicles, including battery electric vehicles (BEVs) and hybrids, increased by almost 11% to 174,000 units, accounting for around 23% of its total vehicle sales. Hybrid electric vehicle (HEV) sales rose by 10.6% to 104,000 units, while plug-in hybrid (PHEV) sales rose by 26% to 14,000 units and BEV sales increased by 27% to 56,000 units.

The company reported a strong sales performance in North America, driven by continued strong demand for hybrid (HEV) models including the Carnival Hybrid and Sportage Hybrid. Sales also increased in India, driven by the recent launch of the Syros SUV, as well as in markets including the Middle East and Central and South America. In Europe, sales were down slightly due to deferred demand ahead of the launch of the Sportage PE, scheduled for the second quarter.

Outlook

Kia said that as global market uncertainties continue, including heightened geopolitical tensions and weakening consumer purchasing sentiment, it will continue to react flexibly and closely manage its inventories while implementing incentive strategies centered on profitability and customer value.

In its domestic market, volumes are expected to be supported by the launch of the EV4 and EV5 BEVs and hybrid models, as well as the launch of new commercial vehicle models such as the PV5 PBV and the Tasman pickup truck.

In the US, sales in 2025 will be supported by the launch of the EV6 and EV9 BEVs and hybrid versions of the Sorento and Sportage SUVs and the Carnival MPV.  In Europe, the company plans to launch the EV4 and EV5 models this year as well as the PBV5, following the recent launch of the EV3.