Source: Gasgoo Author: Ramy
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According to Yonhap News Agency, on January 25, South Korean automaker Kia Motors said that due to rising costs and a stronger Korean Won, its fourth quarter of 2023 increased by 21% year-on-year, falling to 162 million Won from 2.04 trillion Won in the same period in 2022 ( $1.2 billion).
A Kia Motors spokeswoman said, “Increased incentives, an unfriendly exchange rate, which meant the Won strengthened against the US dollar, and rising labour costs affected the quarterly results.” The average exchange rate of the U.S. dollar against the Won fell to 1,289.4 Korean Won in the fourth quarter of last year, from 1,344.8 Won in the previous quarter, according to data from the Bank of Korea (BOK).
Image source: Kia
In the fourth quarter of last year, the company reported an operating profit of 2.47 trillion Won, down 6 % from 2.62 trillion Won in the same period of 2022, while sales increased to 24.33 trillion Won from 23.16 trillion Won in the same period, up 5 % year-on-year.
For the full year of 2023, Kia Motors’ sales rose 15 % to 99.81 trillion Won, thanks to an improved product lineup and higher average selling prices; operating profit also jumped 61 % to 11.61 trillion Won from 7.23 trillion Won in 2022; and net profit rose 62 % to 8.78 trillion Won from 5.41 trillion Won in 2022 .
Looking ahead, Hyundai Motor said it will continue to add pure-electric models despite a slowdown in demand for them, while launching petrol hybrid models to boost sales this year. This year, Kia will launch the EV3 compact SUV in the domestic market and plans to export the model to “strategic” Western European markets this year; next year, the company plans to launch the EV4 midsize SUV in the Korean market; and the EV5, which debuted in China last year, has no timetable yet to be set for its launch in the Korean market. .
In terms of hybrid models, Kia plans to launch petrol hybrid versions of the Carnival and Selton to compete with Japanese rivals such as Toyota in Korea.
For 2024, Kia is targeting full-year sales and operating profit of 101.1 trillion Won and 12 trillion Won, respectively, and hopes to achieve an operating margin of 11.9 %, up from last year’s record 11.6 %.
