Kia announces 2023 third quarter business results

• Kia posts 2023 Q3 global sales of 778,213 units, a 3.5% increase Y/y
• Q3 revenue of KRW 25.55 trillion, with operating profit of KRW 2.87 trillion; operating profit margin hits 11.2%
• Record highest global sales, revenue, operating profit, and operating profit margin for the cumulative nine-month period up to Q3
• Increased sales, average selling price and improved product mix, as well as favorable exchange rates, leads to revenue and profitability growth
• Sales of all-electric model increase by 24.5% Y/y
• Kia to continue sales of popular RV and EV models to boost profitability

Kia Corporation today announced its 2023 third-quarter business results.

For the third quarter of 2023, Kia recorded global sales of 778,213 units, a 3.5 percent increase year over year. The company posted quarterly revenue of KRW 25.55 trillion, with an operating profit of KRW 2.87 trillion, an increase of 10.3 percent and 272.9 percent, respectively. The company also recorded a net profit of KRW 2.22 trillion, including non-controlling interest, an increase of 384 percent compared to the same period last year.

- Advertisement -

Amid the strong sales based on healthy demand in the global market, the company’s profitability has expanded due to improved product mix centered on high value-added models, stabilized raw material prices, and favorable exchange rates.

Kia’s Q3 business results

In the third quarter of 2023, Kia reported global sales of 778,213 units, a 3.5 percent increase from a year earlier. Sales outside of Korea stood at 643,962 units, a 4 percent increase year over year, with sales in Korea at 134,251 units, a 1.1 percent increase.

The strong demand in major regions such as North America and Europe has led the company’s rise in sales outside of Korea.

The continued strong sales of the company’s popular RV models, including the Sportage SUV and Carnival MPV as well as the new Sorento SUV led the slight increase of year-on-year sales in the company’s home market.

Kia’s third quarter revenue of KRW 25.55 trillion, a 10.3 increase year over year, stemmed from expanded sales in North America and Europe, continued increase of average sales price (ASP), improved sales of RV models, and more favorable exchange rates.

Operating profit in the third quarter rose 272.9 percent to KRW 2.87 trillion due to continued strong sales, model mix enhancement and price increase centered on profitable RV models. Stabilized raw material prices as well as the base effect of one-off quality-related warranty provisions in the third quarter of 2022 also contributed to the increase in operating profit. As a result, Kia’s operating profit margin also increased 7.9 percent points to 11.2 percent.

Kia’s cumulative business results up to and including the third quarter of this year was comprised of the company’s highest ever global sales of 2,354,229 million units, up 8.4 percent year over year, and highest ever gross revenue of KRW 75.48 trillion, up 19.1 percent from a year earlier. Operating profit for the nine-month period was another record amount, KRW 9.14 trillion, a 98.4 percent increase year over year, with net profit at KRW 7.16 trillion, up 112.2 percent from a year earlier.

Strong sales of electrified models

In the third quarter of 2023, Kia recorded global retail sales of 149,000 electrified vehicles, which include hybrid, plug-in hybrid, and all-electric models, representing a 21.2 percent increase from a year earlier. In addition, as a percentage of the company’s total sales, Kia’s electrified models increased by 2.7 percent points to a 19.5 percent share in the third quarter.

Electrified models have been a major driving force in Kia’s vehicle sales this year. In Western European countries, the sales proportion of electrified models accounted for 39.6 percent of quarterly vehicle sales, with 33.4 percent and 15.8 percent for Korea and the U.S., respectively.

Future outlook

Kia is confident of continuing its strong performance in the fourth quarter of 2023 despite persisting global economic uncertainties. To achieve its aim Kia will continue to strengthen its efficient business model to enhance profitability. Kia will focus on selling its popular RV models and electrified models, while focusing on strengthening qualitative sales through regional customized strategies.

In particular, the company will continue its market rollout of the EV9 in major markets such as the U.S. and Europe. Kia will also elevate its brand and sales through the successful launch of regional strategic models, including the new Sonet SUV in India and the EV5 all-electric SUV model in China.

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