Hyundai-Kia combined earnings to exceed Toyota in a rare occurrence

As per the reports, South Korean automaker Kia Corp., along with its parent Hyundai Motor Company, are anticipated to outperform Toyota Motor Corp. in the Q1 earnings for the first time ever.

The combined operating profits for Hyundai & Kia was reported at USD 4.8 billion for March quarter. It is the highest figure for the automotive manufacturer so far, also crossing the estimated operating profits for adversary Toyota at USD 4.5 billion.

First quarter revenue report for Hyundai and Kia was shared this week, showcasing record earnings and an impressive outlook. The growth of Korean, India, and US markets at 5.6% was attributed for increasing Kia’s global share to 4%, as per Lee Hae-in of Kia Motors.

Kia saw operating profits skyrocket by 78.9% to USD 2.1 billion compared to a year earlier. It saw a 16.5% rise in sales to 141,749 units in Korea and sold 626,511 units globally, up 11.1% from a year earlier. The car maker a surge in sales of highly profitable larger sport utility vehicles, including Sportage, Carnival and Sorrento, as well as a revival in chip supplies.

The parent company, Hyundai recorded operating profits of USD 2.7 billion in Q1, an 86.3% jump from last year. It sold more than 1 million vehicles, up 13.2% on-year. Sales also boosted 24.7% to USD 28 billion, owing to higher disposal of SUVs, such as Tucson, Santa Fe, and premium brand Genesis.

Moreover, EV market share has also soared recently, with Korea, Western Europe, and the US registering 32%, 36%, and 14% rise, respectively. Kia logged spike of 21.1% in clean car sales in first three months of the year, selling 133,000 units, backed by introduction of new cars, Sportage Hybrid and Plug-in Hybrid.  

Given the positive outlook, the automaker aims to sell around 250,000 units, a 57% more than last year, to account for 8% share in global EV market, with upcoming EV variants, including EV6, Niro EV, and EV9.

 

Source Credit: https://www.koreaherald.com/view.php?ud=20230426000825&np=1&mp=1