• Kia posts 2024 Q2 global sales of 795,183 units, a 1.6% decrease Y/y
• Q2 revenue at KRW 27.57 tln, up 5% Y/y
• Q2 Operating Profit rose 7.1% to a quarterly record KRW 3.64 tln;Operating Profit margin at 13.2%
• Quarterly operating profit and operating profit margin hit the record for two consecutive quarters
• Enhanced product mix and average selling price, stabilized raw material prices and favorable exchange rates, lead to revenue and profitability growth
• Global retail sales of electrified vehicles increased by 8.3% to 162,000 units
• Kia to continue flexible production mix to react to market demands

Kia Corporation today announced its 2024 second quarter business results.

For the second quarter of 2024, Kia recorded global sales of 795,183 units, a 1.6 percent decrease year over year. The company’s quarterly revenue increased 5 percent to KRW 27.57 trillion. Operating profit climbed to KRW 3.64 trillion, up 7.1 percent compared with the same period last year, with an operating profit margin of 13.2 percent. The company also recorded a net profit of KRW 2.96 trillion, including non-controlling interest, an increase of 5 percent year over year. 

Quarterly sales decreased slightly compared with the same period last year due to the temporary suspension of production at certain Kia plants due to the upgrading of facilities for electric vehicle (EV) production. However, the company’s profitability still grew due to stabilized raw material prices, favorable exchange rates, industry leading low-level of incentives, and an improved product mix centered on high-value-added models.

Kia’s Q2 and business results

In the second quarter of 2024, Kia reported global sales of 795,183 units, a 1.6 percent decrease from a year earlier. Sales outside Korea stood at 657,033 units, a 0.01 percent increase year over year, with sales in Korea of 138,150 units, an 8.4 percent decrease year over year. 

Amid strong demand in major regions such as North America, robust sales of key recreational vehicles (RVs) led the company’s increase in sales outside of Korea. The Latin American and Asia-Pacific regions also experienced sales growth, with growing consumer demand met by increased supply. 

Sales in Europe decreased due to a decline in exports of subcompact vehicles caused by the temporary suspension of production at Kia AutoLand Gwangmyeong in South Korea, which is upgrading its facilities for electric vehicle (EV) production. 

Sales in Korea decreased, despite a growth in sales of the company’s key RVs and hybrid models, including the Sportage and Sorento SUVs, and the Carnival MPV. This was due to a decline in industrial demand, which dropped 9.5% following the high base effect from individual consumption tax cuts last year. 

Despite the sales decrease, the company posted second quarter revenue of KRW 27.57 trillion, an increase of 5 percent compared with the same period a year earlier. Kia’s second quarter revenue was supported by a higher average selling price (ASP) for vehicles, driven by an enhanced sales proportion of recreational and electrified vehicles, and strong sales in the North American region.

An enhanced product mix, industry leading low-level of incentives, stabilized raw material prices, and favorable exchange rates saw Kia’s second quarter operating profit increase by 7.1 percent to KRW 3.64 trillion. The company’s operating profit margin also rose to 13.2 percent. This marked the company’s highest quarterly operating profit and operating profit margin since its last record in the first quarter of this year. 

Kia’s first-half 2024 business results include global sales of 1,555,697 units, down 1.3 percent year over year, and gross revenue of KRW 53.78 trillion, up 7.7 percent from a year earlier. Operating profit stood at KRW 7.07 trillion, a 12.6 percent increase year over year, and net profit was KRW 5.77 trillion, up 16.8 percent from a year earlier. Apart from global sales, the company achieved its strongest-ever half-year business results. 

Sales of electrified vehicles

In the second quarter of 2024, Kia recorded global retail sales of 162,000 electrified vehicles, including hybrid, plug-in hybrid and all-electric vehicles representing an 8.3 percent increase from a year earlier. Despite the global adjustment of the EV adoption phase, Kia recorded increased sales due to the continued strong demand for HEV models and the market rollout of its all-electric flagship, the EV9. 

In addition, as a proportion of the company’s total sales, Kia’s electrified vehicles increased by 2.5 percentage points to a 21.4 percent share in the second quarter.

This increase was driven by strong demand for hybrid vehicles, with sales of 89,000 units, a 7.5 percent increase year over year. Plug-in hybrid sales stood at 20,000 units, a 15.3 percent decrease year over year. The company’s EV sales increased 21.8 percent to 54,000 units. 

In Korea, sales of electrified vehicles accounted for around 40 percent of quarterly vehicle sales, with the proportion standing at 38.6 percent and 17.9 percent for Western Europe and the U.S. respectively.

Future outlook

Kia anticipates global market uncertainties will persist in 2024, with ongoing geopolitical risks, high interest rates and inflation. The company is also closely monitoring the changing automobile market, including elements such as intensifying competition and the adjustment of the EV adoption stage. The company plans to maintain optimal inventory levels through flexible production operations based on market demands while continuing its business operations, centered on profitability and customer value.

Kia plans to lead in electrification with the introduction of the new all-electric EV3 and the improved EV6 PE models. Additionally, Kia will expand sales in Korea with its popular hybrid vehicles and maintain sales momentum through the successful launch of the upcoming K8 PE model in the second half of the year.

In the U.S., Kia plans to enhance brand value through optimal incentive levels to maintain residual value. The brand will also continue to improve sales volume and profitability through new models such as the Sorento Hybrid SUV PE, the Carnival Hybrid MPV and the K4 compact sedan. 

In Europe, the company plans to expand its EV lineup through the successful launch of the EV3 and EV6 PE. The brand also aims to increase sales through its EV and HEV models, and by boosting the supply of subcompact vehicles. 

(Revenue / Operating Profit / Net Profit unit: Billion KRW)

		2024			2023
		Q2	YTD		Q2	YTD
Vehicle Sales (Units)		795,183	1,555,697		807,765	1,576,016
	Korea	138,150	276,021		150,816	292,832
	Outside of Korea	657,033	1,279,676		656,949	1,283,184
Revenue		27,567.9	53,780.8		26,244.2	49,934.9
Operating Profit		3,643.7	7,069.4		3,403.0	6,277.0
Net profit		2,956.6	5,765.7		2,816.9	4,936.8

* Net Profit includes non-controlling interest
* Under K-IFRS

Notes:
A. The above results are tentative consolidated business results under “Korean International Financial Reporting Standards (K-IFRS)”
B. The above results are preliminary and unaudited. Figures are subject to change after official audit
C. The above sales volumes are based on wholesales unless otherwise specified
D. The electrified vehicle retail sales figure is rounded up in their hundreds
E. For further information, please refer to the company website – (link)
F. Presentation material is available for download on the Company IR website – (link)