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Kia achieves record revenue in Q1, but operating profit plummets on year

Published: 24 Apr. 2026, 19:44

Kia's headquarters in southern Seoul [YONHAP]

Kia posted its highest-ever quarterly revenue in the first quarter of this year, but operating profit fell sharply by 26.7 percent from a year earlier.

The Hyundai Motor subsidiary reported its first-quarter results on Friday, with revenue of 29.50 trillion won ($19.88 billion), up 5.3 percent from the same period last year. The record set a new all-time quarterly high.

Operating profit came in at 2.2 trillion won during the first quarter, down 26.7 percent from the same period last year, largely due to U.S. tariffs. The impact of tariffs on operating profit in the first quarter amounted to 755 billion won.

In the first quarter, the United States’ 15 percent tariff on imported vehicles was fully reflected.

“Profitability worsened due to external factors such as tariffs, increased incentives amid intensifying competition in North America and Europe, and provisions for sales guarantees driven by the weakening won at the end of the period,” a Kia official said. “We achieved record revenue through an improved product mix focused on high-margin models and a rise in average selling prices.”

Wholesale sales in the first quarter reached 779,741 units — 141,513 units domestically and 638,228 units overseas — up 0.9 percent compared to the same period the year prior, marking the highest first-quarter performance on record.

The record-breaking first-quarter sales were driven by strong demand for environmentally friendly vehicles. Domestic sales rose 5.2 percent year on year, supported by early disbursement of subsidies for electric vehicles.

Kia Sportage SUV [KIA]

Overseas, sales in Africa and the Middle East declined due to the war in the region, but Kia exceeded its targets in other regions, including North America and Europe.

In North America, models such as the Telluride and the Sportage Hybrid performed strongly, while electric vehicles led growth in Western Europe. As a result, Kia’s global market share, based on retail sales, rose 0.5 percentage points year on year to 4.1 percent, marking the first time it has exceeded 4 percent.

Kia expressed confidence that it would achieve its annual wholesale sales target of 3.35 million units during a conference call following the earnings announcement on Friday. Despite geopolitical risks, intensifying competition in major markets such as Europe, and an uncertain business environment, the company plans to focus on defending profitability by improving its product mix and average selling prices.

The motor company also plans to expand sales of models, such as the EV4, EV5 and PV5, while continuing growth centered on environmentally friendly vehicles, including the Seltos Hybrid, in Korea.

Kia vehicles bound for export are parked at the Pyeongtaek port in Gyeonggi on April 3. [NEWS1]

In the United States, it aims to boost sales of high-margin models such as the Telluride and the Carnival, while strengthening its hybrid lineup. In Europe, the company plans to solidify its leadership in the electric vehicle market by building a full lineup of volume EVs ranging from the EV2 to the EV5. In emerging markets such as India and Latin America, it will pursue locally tailored strategic models and expand supply.

Hyundai Mobis, Korea’s leading auto parts maker, also announced its first-quarter results the same day.

The company reported revenue of 15.56 trillion won and operating profit of 802.6 billion won, up 5.5 percent and 3.3 percent, respectively.

Growth was driven by an expansion of overseas clients and an increase in the supply of automotive electronics components. The company plans to invest more than 2 trillion won in research and development this year for the first time to strengthen its competitiveness in future mobility technologies.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY LEE SU-JEONG [[email protected]]