Kia records 10 times increase in Q2 profit

South Korea automobile brand Kia recorded 1.48 trillion won in operating income in the second quarter, an increase of 924.5% from the same time period a year ago.

Sales increased by 61.3% to 18.33 trillion won over the same time period.

Kia’s net income during the quarter was 1.34 trillion won, an increase of 963.2% year-on-year.

Operating income beat South Korean analysts’ consensus of 1.37 trillion won.

Kia said its profitability was increased due to surge in demand for automobiles due to weakening affect of the pandemic.

It also expanded sales of new car models that are more profitable.

Kia said it is aiming for successful launches of its new Sportage and EV6 in the second half of the year.

It will also continue to focus on selling profitable RVs such as Sorento and Carnival, the company added.

However, though the global chip shortage was easing, affects of the shortage is expected to continue to the third quarter and it will take a long time for normalization, Kia warned.

In the second quarter, the company sold 754,117 units of vehicles, an increase of 46.1% from a year ago. Global unit sales reached 605,808 units, an increase of 70.9% over the same time period.

Like affiliate Hyundai Motor, Kia also warmed of a slowdown in growth during the second half of the year due to outbreaks of COVID-19 and increase in raw material prices.