Core Insights - Kia Corporation reported a significant 37% year-on-year decline in net profits to KRW 1.42 trillion (US$ 997 million) in Q3 2025, primarily due to a 25% import tariff imposed by the US government earlier this year [1] - The company's operating profit fell by 49% to KRW 1.46 trillion, with the operating margin decreasing to 5.1%, influenced by higher incentive payments and unfavorable currency exchange rates [2] Financial Performance - Global revenues increased by 8.2% year-on-year to KRW 28.69 trillion in Q3 2025, driven by a better product mix and a 32% rise in hybrid and electric vehicle sales to 204,000 units, while overall sales volumes grew by only 2.8% to 785,137 vehicles [2] - For the first nine months of 2025, global revenues rose over 7.2% year-on-year to KRW 86.05 trillion, but operating profit decreased by 27% to KRW 7.24 trillion, and net income fell by 24% to KRW 6.08 trillion [4] Market Dynamics - Despite strong electric vehicle sales, deliveries in Europe declined due to model discontinuations and temporary production adjustments in Slovakia, while sales in India decreased due to deferred demand ahead of a Goods and Services Tax reduction [3] - In the US, Kia achieved record sales of 219,637 units during the quarter [3] Strategic Outlook - Kia anticipates ongoing global trade uncertainties, including tariffs, will continue to impact profitability, but remains committed to expanding its global presence through more hybrid models and a full electric vehicle lineup [5] - The company plans to leverage its flexible production system in the US to adapt to market demand and regulatory changes, while expanding its hybrid offerings [5] - In Europe, Kia aims to enhance its EV lineup with models such as EV4, EV5, and PV5, and in India, it will focus on maintaining sales momentum with the Syros SUV and launching a redesigned Seltos SUV [5]