Kia's Q2 Profit Soars: Record Margins Amid EV Transition

Philip Lee -

Seoul, South Korea - Kia Corp (000270. KS) reported record quarterly operating profit, as strong sales of high-margin SUVs and a favorable exchange rate offset a slight dip in global vehicle sales.

Kia's operating profit rose 7.1% to KRW 3.64 trillion (US$2.63 billion) in the second quarter, while revenue increased 5% to KRW 27.57 trillion (US$19.92 billion). 

Net profit grew 5% to KRW 2.96 trillion (US$2.14 billion).

The company's global vehicle sales fell 1.6% to 795,183 units, primarily due to production disruptions as some plants were upgraded for electric vehicle manufacturing.

"Our profitability grew despite the slight sales decrease, thanks to an improved product mix centered on high-value-added models and industry-leading low incentive levels," said a Kia spokesperson.

Key Metrics

Global Vehicle Sales:

  • Q2 2024: 795,183 units
  • YoY change: -1.6%

Electrified Vehicle Sales:

  • Q2 2024: 162,000 units 
  • YoY growth: 8.3%
  • Share of total sales: 21.4% (up 2.5 percentage points YoY)

Regional Sales Performance:

  • Outside Korea: 657,033 units (+0.01% YoY)
  • South Korea: 138,150 units (-8.4% YoY)

Kia plans to launch new electric models, including the EV3 and an updated EV6, to maintain momentum in the competitive EV market.

The company warned of persistent global market uncertainties for the remainder of 2024, citing geopolitical risks, high interest rates, and inflation.