On Monday, South Korea-based Kia Corp released its first-quarter results and reported a slight drop in net profit and sales. Net profit ended at approximately $825 million (1.032 trillion won ₩). In comparison, operating profit increased to roughly $1.28 billion (1.606 trillion won ₩), an increase of 49.2% year-over-year.
A spokesperson for Kia said financial results were impacted by “high deferred corporate taxes” and “one-off costs amid global chip shortages.” Kia also cited production losses and supply chain issues due to shutdowns in China and high prices of raw materials and the ongoing war in Ukraine, which is leading to further parts shortages.
Sales reportedly dipped to 685,739 vehicles, a 0.6% drop year-over-year. Despite the decline, Kia’s electric vehicle sales look promising, with the Niro EV and EV6 models performing well in South Korea and Europe. Kia is still aiming to be one of the most prominent EV sellers globally, with EV sales totaling 14,269 for the quarter. Expert estimations indicate the company already makes up 8.7% of the EV market in western Europe, falling just short of Tesla, which makes up 10 percent of that market.
Kia said it plans on ramping up production at all of its plants when there is some alleviation of the semiconductor chip shortage in an effort to increase sales amid ongoing high demand.
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