In the first three months of this year, Kia sold 137,871 vehicles in South Korea and 622,644 overseas, with total sales slightly down 1% from the same period last year. Despite a slight drop in car sales, the company still managed to improve its performance.

According to a regulatory filing, Kia’s first-quarter revenue was 26.21 trillion won, which increased 10.6 percent from a year earlier. Operating profit was 3.42 trillion won, which increased 19.2 percent from the same period last year. Consolidated net profit was 2.8 trillion won, compared with 2.1 trillion won a year earlier.

Yonhap news agency pointed out that Kia Motors’ earnings in the first quarter of this year exceeded market expectations. According to a survey by Yonhap Infomax, a financial data company owned by Yonhap News agency, the analyst expected a quarterly net profit of 2.24 trillion won.

Kia said the improvement was due to an increase in the average selling price of eco-friendly models such as hybrid car, SUV and minivans. In the last quarter, Kia’s retail sales of electric vehicles, including hybrid, plug-in hybrid and pure electric models, were 157,355 units. The number increased 18.1 percent from the same period last year, accounting for 20.6 percent of total sales. Among them, sales of hybrid and electric vehicles increased by 30.7 percent and 7.9 percent year-on-year to 93,000 and 44,000 units respectively. The company also pointed out that the foreign exchange rates was a positive factor.

Kia Motor said it expects to face a tough business environment since persistent geopolitical risks, slow economic growth, high interest rates and declining of consumer confidence due to inflation. In the United States, Kia plans to maintain profits with new and higher-margin models such as the Carnival hybrid and K4. In the European market, Kia hopes to strengthen its electric vehicle product lineup to establish a leading brand image in the highly competitive electric vehicle segment.