Kia announces 2023 second quarter business results

• 2023 2Q global sales records 807,772 units, a 10.1% increase Y/y
  • 2Q revenue increased 20% to KRW 26.24 trillion
  • Operating profit increased 52.3% to KRW 3.4 trillion
  • Operating profit margin of 13%, versus 10.2% for 2022 2Q
  • Kia records best-ever results for quarterly revenue, operating profit, operating profit margin
• Increase in sales, average selling price (ASP) and improved product mix, as well as favorable exchange rates, led to revenue and profitability increase
• Sales of eco-friendly vehicles show steady growth at 150,000 units, a 13.1% increase Y/y
• Based on solid results, Kia raised its annual consolidated financial guidance to revenue of more than KRW 100 trillion, operating profit at KRW 11.5~12 trillion, and operating profit margin of 11.5~12%
• Kia to continue sales of higher-margin models to boost profitability, supported by the strong brand perception and the success of the new EV9

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

For the second quarter of 2023, Kia recorded global sales of 807,772 units, a 10.1 percent increase year over year. The company posted quarterly revenue of KRW 26.24 trillion with an operating profit of KRW 3.4 trillion, an increase of 20 percent and 52.3 percent, respectively. The company also recorded a net profit of KRW 2.82 trillion, including non-controlling interest, an increase of 49.8 percent compared to the same period last year. 

Kia continues to report best-ever operating profit for three consecutive quarters, beginning in 2022 fourth quarter. The company also recorded an operating profit margin of 13 percent, one of the highest levels among global automotive OEMs.

Kia raised its annual consolidated financial guidance following a solid result during the first two quarters and the company’s continuously improving global brand perception after its brand relaunch. The new targets are revenue of more than KRW 100 trillion, operating profit at KRW 11.5~12 trillion, and operating profit margin of 11.5~12 percent.

Kia’s 2Q business results

In the second quarter of 2023, Kia reported global sales of 807,772 units, a 10.1 percent increase from a year earlier. Sales outside of Korea stood at 656,956 units, a 10.8 percent increase year over year, with sales in Korea at 150,816 units, a 7.1 percent increase.

Sales outside of Korea achieved double-digit growth in major markets with a virtuous cycle of improved vehicle supply leading to increased sales. Sales of RV models proved particularly strong, rising 20 percent Y/y in North America and Europe. Kia’s sales in Korea also reflected a high demand for RV models, with solid results for Kia’s all-new EV9 flagship electric SUV.

Kia’s solid second-quarter revenue of KRW 26.24 trillion, a 20 percent increase year over year, stemmed from increased sales volume due to stabilized production, continued increase in sales prices per unit, and more favorable exchange rates.

Operating profit in the second quarter rose 52.3 percent to KRW 3.4 trillion due to a significant sales increase, model mix enhancement and average sales price increase centered on higher trim and high-priced models. Also, Kia is maintaining one of the lowest incentives in the industry based on the company’s strong brand perception. Kia recorded operating profit margin of 13 percent versus 10.2 percent from the same period last year.

Kia’s 2023 first-half business results are global sales of 1,576,023 units, up 11 percent year over year, and gross revenue of KRW 49.93 trillion, up 24.1 percent from a year earlier. Operating profit was at KRW 6.28 trillion, a 63.4% increase year over year, and net profit of KRW 4.94 trillion, up 69.4 percent from a year earlier.

Strong sales of electrified models

In the second quarter of 2023, Kia recorded retail sales of 150,000 electrified vehicles, which include hybrid, plug-in hybrid, and all-electric models, representing a 13.1 percent increase from a year earlier. In addition, the percentage of the company’s total sales that Kia’s electrified models represent increased by 1.2 percent to 18.9 percent in the second quarter.

Electrified models have been a major driving force in Kia’s vehicle sales. In Western European countries, the sales proportion of electrified models accounted for 33.7 percent of quarterly vehicle sales, with 34.2 percent and 16.5 percent for Korea and the U.S. respectively.

Future outlook

Kia is confident of continuing its strong performance in the second half of 2023 despite persisting global economic uncertainties. To achieve its aim Kia will continue and strengthen its efficient business model to enhance profitability. Kia will focus on further stabilizing and boosting production to meet the strong customer demands and further expand higher-margin RV sales.

In particular, Kia will strengthen its position as a sustainable mobility solutions provider and a leading EV brand with the global sales of the EV9 model, which is already showing strong sales results in Korea. Sales of the EV9 in North America and Europe are scheduled to commence in the fourth quarter.

Furthermore, Kia will strive to expand the sales proportion of key SUV models in key markets, including the Sportage, Sorento, and Telluride. For India and China, Kia introduced the Seltos Product Enhancement (PE) in July and plans to launch the all-new, electric EV5 compact SUV and the EV6 going forward, respectively.

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