Kia Corporation, South Korea's second-largest automaker owned by Hyundai Motor Group, reported a 23% drop in net profit to KRW 7.55 trillion (US$ 5.3 billion) in 2025, blamed largely on the impact of the US import tariffs introduced last April.

Revenue rose 6.2% to a record KRW 114.1 trillion (US$ 80 billion), with global vehicle sales rising by 1.5% to 3.14 million units. Strong demand for hybrid models helped increase average selling prices. Sales of electrified vehicles, including hybrids and battery electric vehicles (BEVs), rose by over 17% to 749,000 units, equivalent to over 24% of total sales.

The automaker reported a 28% drop in operating profits to KRW 9.08 trillion (US$ 6.4 billion) in 2025, as the company absorbed most of the increased costs related to the US tariffs. In April 2025, the US government applied a 25% tariff on imports of vehicles and components from South Korea, before reducing the tariff rate to 15% in November, although this still seems to be under discussion.

Jung Seong-kook, Kia's senior vice president, said the introduction of US import tariffs cost the company around KRW 2.9 trillion in lost earnings last year, and expects this to rise to KRW 3.3 trillion in 2026.

Kia is forecasting global vehicle sales to rise by 6.8% to 3.35 million units in 2026, which is expected to generate revenues of KRW 122.3 trillion and an operating profit of KRW 10.2 trillion. This includes 915,000 deliveries in the US, 594,000 in Europe and 302,000 units in India. The company said it will continue to expand its SUV and hybrid lineup in the US, launch new BEV models in Europe - including the new EV2, and strengthen its SUV range in India with the launch of the all-new Seltos.