Kia’s First Half of 2025: Growth Meets Uncertainty
Kia’s first half of 2025 was marked by both sales growth and successful EV strategy implementation, alongside challenges like US tariffs and increasing global economic uncertainty. While revenue grew by 6.7% year-on-year to over 57 trillion won, operating profit fell 18.3% to 5.7 trillion won.
Performance Analysis: Light and Shadow
- Positives: Robust growth in domestic and Indian markets and successful launch of the EV3 model highlight Kia’s future growth potential. Expansion of HEV/EV sales and entry into new businesses like finance and real estate development are also encouraging.
- Negatives: US tariffs, sluggish European market, intensifying competition in China, rising raw material prices and logistics costs put pressure on profitability.
Investment Focus: Eyes on the September 9th IR
On September 9th, 2025, Kia will attend the CITIC CLSA Investors’ Forum to update key management details. This IR presents a crucial opportunity for investors to assess Kia’s future strategies and growth potential.
- Key Considerations: Pay close attention to announcements on improving operating profit margins, EV transition strategy, new business growth, and strategies to address macroeconomic variables.
- Investment Strategy: It’s crucial to compare the IR announcements against market expectations to inform your investment decisions. Positive announcements could provide upward momentum, while negative ones could lead to short-term price adjustments.