Kia Corporation reported a 6.5% rise in revenues year-on-year to a record KRW 29.35 trillion in the second quarter of 2025, driven by strong global demand for its hybrid models, higher average selling prices (ASP) and favourable exchange rates.
The South Korean automaker saw its operating profit plunge by over 24% to KRW 2.77 trillion, however, reflecting higher sales incentives and a much tougher international trade environment, following the recent US import tariff hikes. The company’s operating margin was still a highly respectable 9.4%. Net profits, including non-controlling interests, fell by 23.3% to KRW 2.27 trillion.
Kia’s global vehicle sales increased by 2.5% to 814,888 units in the second quarter of 2025, driven by a 14% rise in sales of electrified models to 185,000 units. Domestic sales were lifted by the recent launch of the EV4 battery-powered sedan and the Tasman pickup truck, while US sales were helped by strong demand for the Carnival Hybrid MPV and K4 sedan and sales in India were supported by the recent launch of the Syros compact SUV.
Kia also reported strong growth in markets in the Middle East and Africa, while sales in Europe declined, in line with weak overall market demand and slowing Sportage uptake ahead of the launch of the Sportage PE, which is scheduled to be unveiled in the third quarter.
Outlook
Kia said it will continue to adopt flexible strategies to deal with the ongoing global market uncertainties, including maintaining appropriate inventory levels and demand-based production, implementing incentive strategies centered on profitability and customer value.
In South Korea, the automaker will continue to focus on expanding sales of hybrid models, including hybrid versions of Sportage, Sorento and Carnival models, as well as expanding its BEV range with the launch of the EV5 and PV5 models.
In the US the company will continue to focus on enhancing profitability by increasing the supply of hybrid versions of the Sportage, Sorento and Carnival models, while in Europe it plans to launch the EV4 in the third quarter. In India the company will soon introduce its first full-electric, made-in-India Carens Clavis EV, while also strengthening its dealer network.
Kia said it remains committed to completing its full EV lineup by 2026, including rolling out its new EV4, EV5, and EV2 models globally. The company will continue to expand its global presence by offering more hybrid models and entering new segments, including hybrid versions of the Telluride and Seltos SUVs, which will line up alongside a growing range of PBVs and pickup trucks.
