Kia reports record operating profit of 12.67 trillion won in 2024
Published: 24 Jan. 2025, 14:31
Updated: 24 Jan. 2025, 16:59
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- CHO YONG-JUN
- [email protected]
![Kia's dedicated EV plant in Gwangmyeong, Gyeonggi. [KIA]](https://koreajoongangdaily.joins.com/data/photo/2025/01/24/21f7b0e0-5535-4959-9070-ab5c78039bc7.jpg)
Kia's dedicated EV plant in Gwangmyeong, Gyeonggi. [KIA]
Kia reported a record-high operating profit of 12.67 trillion won ($8.86 billion) in 2024, driven by strong hybrid and SUV sales followed by a decrease in battery cell prices.
The automaker's yearly operating profit, which increased 9.1 percent on year, is largely on par with the market consensus of 12.77 trillion won, filed by market tracker FnGuide.
Kia's annual revenue hit an all-time high of 107.45 trillion won, up 7.7 percent on year and beating the market consensus of 106.93 trillion won.
"Our decision to increase [the production] of hybrid vehicles to sharply combat the EV chasm really shined through," Kia's Chief Financial Officer and Senior Vice President Kim Seung-jun said during Friday's conference call.
The automaker sold 3,089,300 vehicles in 2024, a 0.1 percent increase on year, and the highest in the company’s history.
Kia’s fourth-quarter operating profit came at 2.72 trillion won, an increase of 10.2 percent on year, while the quarterly revenue in the same period was 27.15 trillion won, a 10.2 percent increase on year.
The automaker will launch its new Tasman pickup truck, PV5 purpose-built EV and Syros SUV, a vehicle designed specifically for the Indian market.
"We are preparing an electric vehicle model that may break the EV chasm," the Kia CFO said, adding that the company plans to unveil the successor to the hit SUV Telluride and Seltos in the North American market at the end of 2025.
"Even if we calculate with a conservative exchange rate, we expect an increase in revenue in 2025," he said.
Kia said the company aimed to sell 4.4 percent more vehicles this year, at 3.22 million units, while it aimed for 112.5 trillion won yearly revenue and 2.4 trillion won operating profit in 2025.
Kia also said the company plans a 700 billion won share buyback and cancellation to increase shareholder value.
Kia also commented on U.S. President Donald Trump's plan to impose a 25 percent tariff across the board in Mexico. The automaker has a factory in Mexico that exports the K4 sedan to the United States.
"If the United States was to impose an unconditional export control to Mexico, we might have to change the destination, like shipping the cars to Canada," Kia Senior Vice President Jung Seong-kook said.
Update Jan. 24: Remarks by Kim Seung-jun and Jung Seong-kook added.
BY CHO YONG-JUN [[email protected]]
with the Korea JoongAng Daily
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