Kia Reports 2.1% Rise in Q3 Net Profit Driven by New and Hybrid Models

SEOUL: Kia Corp., South Korea's second-largest automaker, announced a 2.1 percent increase in its third-quarter net profit, reaching 2.26 trillion won (approximately US$1.6 billion), buoyed by strong demand for its new and gasoline hybrid models. This growth comes despite a backdrop of sluggish industrial demand. According to Yonhap News Agency, Kia's performance was bolstered by the popularity of new models like the all-electric EV3 SUV and the updated K8 sedan, alongside gasoline hybrid vehicles that compensated for declining electric vehicle sales. However, the company had to allocate 630 billion won for engine warranty extensions in the U.S., which tempered the net results. Kia anticipates ongoing challenges such as a slowdown in EV sales, geopolitical risks, and increased competition affecting costs for the remainder of the year. To sustain growth, the company plans to focus on boosting sales of gasoline hybrid versions of its Sportage and Sorento SUVs and the Carnival minivan in the upcoming quarter. K ia's Chief Financial Officer, Joo Woo-jeong, stated during a conference call, "In the next two years through 2026, we will launch a record number of new models, which will offer us an opportunity to make a leapfrog in the market." The company aims to start with the introduction of a mini SUV in India in January, followed by the global rollout of the all-new Tasman pickup truck, Telluride flagship, and Seltos compact SUVs. Despite current market conditions, Kia also plans to release new battery-powered models, the EV4 and EV5. Operating profit saw a modest rise of 0.6 percent to 2.88 trillion won, while sales increased by 3.8 percent to 26.52 trillion won. Kia has adjusted its earnings guidance upwards, targeting an operating profit between 12.8 trillion won and 13.2 trillion won, with sales projected to reach 105 trillion won to 110 trillion won this year. Additionally, as part of its efforts to enhance shareholder value, Kia intends to cancel the remaining half of the 500 billion won worth of treasury stoc ks it repurchased earlier this year, with the first half already canceled in May.