On April 25, 2022, Kia held a conference call at Kia's headquarters in Seoul to announce its operating results for the first quarter of 2022.
Kia sold 688,739 units (0.6 percent) in the first quarter of 2022, resulting in sales of 18.35 trillion won (10.7 percent) and operating profit of 160.65 million won (49.2 percent) It declared a profit of 1.518 trillion won (15.1 percent) and a net profit of 1.32.6 trillion won (0.2 percent). (in accordance with IFRS)
In the first quarter of 2022, Kia sold 685,739 units worldwide. The South Korean market was 121,664 units, down 6.5% year-on-year, and overseas sales were 564,075 units, up 0.7% year-on-year. (Subject to wholesale)
Despite Kia Motors' efforts to guarantee production in the Korean market, production was disrupted due to a shortage of some parts such as semiconductors, resulting in a decline in sales of major models such as the Sorento, and the Korean market fell by 6.5% compared to the previous year.
In overseas markets, inventory shortages continue due to production disruptions due to semiconductor shortages, but demand for models continues to be strong in most regions. North America, Europe, and India all achieved sales growth.
Sales in the first quarter reached KRW 18,357.2 billion, up 10.7% year-on-year, due to an increase in the proportion of SUVs that led to an increase in average selling prices due to lower sales due to production disruptions.
High-margin SUVs and MPV sales accounted for a record high of 61.3%, an increase of 1.6 percentage points over the same period last year, and profitability increased significantly.
As a result, operating profit for the first quarter was KRW 160.65 billion, an increase of 49.2% over the previous year, and operating margin increased by 2.3 percentage points to 8.8%.
At the same time, while announcing the first quarter results, Kia also announced the results related to new energy vehicles, and Kia is working hard to transform into a company with "sustainable mobility solutions".
In the first quarter of this year, Kia's new energy vehicle sales increased by 75.2% year-on-year to 110,430 units, and the sales of new energy vehicles accounted for 15.8% of total sales, an increase of 6.9 percentage points over the same period last year.
By type, there were 51,025 hybrids consisting of Niro, Sorento and Sportage (up 68.7% over the previous year) and 15,868 plug-in hybrids centered on Niro, Seed and Sorento (up 4.3% over the previous year). Vehicles such as the EV6 and Electric Niro EV sold 43,150 units (up 148.9% yoy).
Especially in the South Korean and Western European (EU+EFTA) markets, sales of the Niro EV, the representative model of electric vehicles, continued to rise, increasing significantly to 16.1% (compared with 10.6% last year).
In addition, according to the survey results of the global automotive industry research institute "JATO", as of February this year, Kia sold a total of 14,269 electric vehicles in the Western European market, accounting for 8.7% of the market share, becoming the second largest brand in electric vehicle sales. (1st place: Tesla, 10.0%)
Kia sold a total of 63,419 units in Europe last year, ranking sixth with a 5.4% share, and this year, with the HOT SALES OF THE EV6, Kia became the leading brand in the European electric vehicle market.
Kia expects real earnings to improve in the second quarter, while keeping a close eye on concerns about continued pandemic-related measures in certain markets, such as the recent outbreak in Shanghai, China, rising raw material prices due to unstable international relations, and concerns about falling purchasing power due to inflation.
Most of the impact of the pandemic is expected to ease from the second quarter, south Korea recently lifted social distancing measures, and global automotive demand is expected to recover as the semiconductor supply and demand situation partially eases.
Therefore, Kia plans to improve the supply and demand situation of components such as semiconductors while maximizing plant utilization, so as to quickly absorb standby demand and expand sales.
In addition, Kia plans to maximize profitability by continuously upgrading products and a portfolio of products based on improved brands and marketability.
Kia plans to focus on expanding the profitability of electric vehicles, such as new energy vehicles such as the new Niro and EV6, which have been named European Cars of the Year, proving the strength of the product and further strengthening its brand positioning as a "sustainable mobility solutions company" and its leadership position in the electric vehicle market.