Kia’s net profits drop 23% in 2025 on US import tariffs

Core Insights - Kia Corporation, South Korea's second-largest automaker, experienced a 23% decline in net profit to KRW 7.55 trillion (US$ 5.3 billion) in 2025, primarily due to the impact of US import tariffs [1][6] Financial Performance - Revenue increased by 6.2% to a record KRW 114.1 trillion (US$ 80 billion), with global vehicle sales rising by 1.5% to 3.14 million units [2] - Operating profits fell by 28% to KRW 9.08 trillion (US$ 6.4 billion) as the company absorbed increased costs from US tariffs [3] Impact of US Tariffs - The introduction of US import tariffs cost Kia approximately KRW 2.9 trillion in lost earnings in 2025, with expectations of this rising to KRW 3.3 trillion in 2026 [4] - The US government imposed a 25% tariff on vehicle and component imports from South Korea in April 2025, later reducing it to 15% in November, although discussions on this matter are ongoing [3] Future Outlook - Kia forecasts a 6.8% increase in global vehicle sales to 3.35 million units in 2026, projecting revenues of KRW 122.3 trillion and an operating profit of KRW 10.2 trillion [5] - The company plans to expand its SUV and hybrid lineup in the US, launch new BEV models in Europe, and strengthen its SUV range in India with the new Seltos [5]