Kia Announces 2024 Third Quarter Business Results

• Kia posts 2024 Q3 global sales of 763,693 units, a 1.9% decrease Y/y
• Q3 revenue at KRW 26.52 trillion, up 3.8% Y/y
• Q3 operating profit at KRW 2.88 trillion; operating profit margin of 10.9%
• Global retail sales of electrified vehicles increased by 3.6% to 155,000 units, backed by Kia’s popular HEV models and new all-electric EV3 SUV
• Kia to further strengthen its flexible production system based on diverse powertrain competitiveness and continue sales of high-value-added models
• Kia raised annual financial guidance: 2024 full-year revenue at KRW 105 – 110 trillion; operating profit at KRW 12.8 – 13.2 trillion; operating profit margin of over 12%
• Kia plans to cancel remaining 50% of treasury stock by end of 2024, which it acquired in the first half of this year, to enhance shareholder value

Kia Corporation has announced its 2024 third quarter business results and raised its annual consolidated financial guidance. The new targets are revenue of KRW 105-110 trillion, operating profit of KRW 12.8-13.2 trillion, and an operating profit margin of over 12 percent.

For the third quarter of 2024, the company’s quarterly revenue increased 3.8 percent to KRW 26.52 trillion, supported by a higher average selling price (ASP) for vehicles, driven by an enhanced sales proportion of recreational and electrified vehicles.

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Operating profit and net profit, rose 0.6 percent and 2.1 percent respectively year over year to KRW 2.88 trillion and KRW 2.27 trillion. The company’s operating profit margin also stood at 10.9 percent, recording a two-digit margin for eight consecutive quarters since the fourth quarter of 2022.

Kia’s profitability growth was helped by stabilized raw material prices, favorable exchange rates and an improved product mix, which more than offset the impact from one-off pre-emptive provisions related to warranty extension in the quarter. Excluding these provisions, operating profit reached KRW 3.51 trillion, with an operating profit margin of 13.2 percent in the third quarter.

Kia sold 763,693 units in the third quarter of 2024, a 1.9 percent decrease year over year, due to the temporary suspension of production at certain Kia plants as part of upgrades to facilities. Separately, the temporary gap in sales of some models was a result of optimizations to vehicle lineups.

Sales increased in major regions such as North America, India, the Middle East and the Asia-Pacific region, strengthened by the appeal of the company’s key recreational vehicles (RVs), such as the Sportage and Telluride SUVs. However, a decrease in EV sales due to reduced subsidies, plus lack of supply of the company’s popular subcompact vehicles in Europe, contributed to an overall sales decrease outside of Korea of 0.8 percent.

Sales in Korea also decreased, despite a growth in sales of the company’s hybrid models. This was due to an overall decrease in demand across the automotive industry as well as the temporary suspension of production at the Kia AutoLand Hwaseong facility in Korea, which is upgrading its facilities in preparation for the introduction of the new Tasman pickup truck.

In the third quarter of 2024 Kia recorded global retail sales of 155,000 electrified vehicles, including hybrid (HEV), plug-in hybrid (PHEV) and all-electric vehicles, representing a 3.6 percent increase from a year earlier. This was led by strong demand for HEV models, such as the Sportage Hybrid and Carnival Hybrid as well as new models, such as the all-electric EV3 SUV.

In addition, sales of Kia’s electrified vehicles accounted for 21 percent of the company’s total sales in the third quarter, an increase of 1.5 percentage points. This increase was driven by strong demand for hybrid vehicles, with sales of 84,000 units, a 10 percent increase year over year. Plug-in hybrid sales stood at 17,000 units, a 26.7 percent decrease year over year. The company’s EV sales increased 8.3 percent to 54,000 units.

For the nine months through September this year, Kia’s 2024 business results include global sales of 2,319,390 units, down 1.5 percent year over year, and gross revenue of KRW 80.30 trillion, up 6.4 percent from a year earlier. Operating profit stood at KRW 9.95 trillion, an 8.8 percent increase year over year, and net profit of KRW 8.34 trillion, up 12.2 percent from a year earlier.

As the company’s accumulated business results from January to September exceeded targets, Kia also announced that by the end of 2024 it will cancel the remaining 50 percent of the KRW 500 billion treasury stock it acquired in the first half of this year, fulfilling the company’s commitment to enhance shareholder value. Prior to this, the first 50 percent of the treasury stock, representing 2,185,786 individual shares, was cancelled by Kia in May.  

Outlook

Kia anticipates global market uncertainties will persist, with ongoing geopolitical risks and a sluggish economy. Kia plans to continue to enhance its profitability based on the company’s fundamentally enhanced product competitiveness and brand power, while closely monitoring the changing automobile market, including elements such as intensifying competition and the adjustment of the EV adoption stage.

In particular, Kia will strengthen its flexible production system, based on the company’s industry-leading technology across various powertrain lineups, including ICE, EV, PHEV, and HEVs. This will enable the company to react flexibly to changing electrified vehicle market demands. In addition, Kia will continue to expand sales centered on its key RV and HEV models, as well as popularizing EVs with the brand’s new EV3 all-electric compact SUV.

The company also plans to improve the residual value of its models through enhanced inventory operation by market to maintain a leading level of profitability in the automotive industry.

Kia will build sales momentum in the fourth quarter through optimized production. The company will also commence sales of its popular models, including the K8 Hybrid and Carnival Hybrid, while preparing for the launch of the new Sportage SUV.

In Korea, the company will continue to expand sales of its popular RV models with hybrid lineups including the Carnival MPV and Sorento SUV, as well as its new EV3 all-electric SUV and K8 sedan to overcome decreasing demand across the global automotive industry.

In the US and Europe, Kia will commence sales of key vehicles for each market, including the company’s HEV and RV models, the new K4 compact sedan and EV3, while expanding supply of its subcompact models, such as the Morning and Stonic, which experienced a temporary supply shortage in Europe.

In India, the company will expand sales of its GT line trim, offering an improved customer choice and design. Kia will also continue to utilize its plant in China as an export strategy hub to expand sales in the Asia-Pacific, Middle East and Latin America regions.

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