Kia Corporation reported a 14.8% decline in first-quarter net profit despite higher sales, as rising costs and increased competition squeezed margins. Net income fell to 2.39 trillion won ($1.8 billion) compared with 2.81 trillion won a year earlier, according to the automaker’s unaudited results released Friday.
Revenue rose 6.9% to 28 trillion won, driven by a 3.3% increase in global retail sales to 753,000 vehicles. However, the cost of sales ratio expanded to 78.3% from 76.2% a year earlier, cutting into profitability. Operating profit margin narrowed to 10.7% from 13.1%.
Kia’s electrified vehicle sales grew 10.7% to 174,000 units, now representing 23.1% of total sales. Battery electric vehicles saw the strongest growth at 27%, while hybrid sales increased 10.6%. Plug-in hybrid sales dropped 26.3%.
Regional performance varied significantly, with U.S. sales rising 10.7% and India surging 15.6%. Middle East and Africa markets showed the strongest growth at 25.5%. Meanwhile, sales declined in Korea (-2.3%), Western Europe (-3.3%), and China (-9.9%).
The company’s liabilities-to-equity ratio increased to 71.9% from 66.1% at the end of 2024, reflecting increased investments in electrification and technology upgrades across its vehicle lineup.
