Kia posts record Q2 revenue, profits fall
Kia posted record second-quarter revenue of 33.037 trillion won and record quarterly wholesale sales of 851,639 units, driven by its electrified lineup and timely new models. However, operating profit declined 4.9% year over year to about 2.629 trillion won due to higher warranty provisions and intensified competition. Domestic retail sales rose about 8.6%, with overseas sales accounting for 81.8% of total, helped by strong performances in the US and Western Europe as new SUVs and EVs boosted demand. Global demand fell roughly 3.8% amid Middle East instability and weaker Chinese sentiment, but Kia countered by expanding its electrified lineup and swiftly aligning products with regional demand. Electrified vehicle sales surged, with hybrids and EVs totaling about 296,000 units, and EV models like the EV3, EV5 contributing to growth. The company signaled a robust second half on new models and eco-friendly demand, though potential domestic strike risk could pose earnings headwinds.
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