Seoul: Automaker Kia said on Friday that its first-quarter net profit rose 32.5 per cent (year-on-year), backed by increased sales of SUVs, minivans and hybrid models.
Net profit for the January-March period came to 2.8 trillion won ($2 million) on a consolidated basis, compared with a profit of 2.1 trillion won a year ago, the company said in a regulatory filing.
Its overseas sales grew owing to strong demand in major regions, such as North America and Europe.
However, sales in some emerging markets, such as "India and the Middle East, decreased compared to the previous year due to factors such as aging models and geopolitical factors".
Kia said it expects to face challenging business environments due to several factors, such as persistent geopolitical risks, sluggish economic growth and dampened consumer confidence due to high interest rates and inflation.
"The earnings beat market expectations. The average estimate of net profit by analysts stood at 2.24 trillion won," according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
The company managed to improve its on-year performance despite a slight decrease in the number of vehicles sold. Kia sold 137,871 units in South Korea while shipping 622,644 overseas.
The combined 765,515 units sold during the period represent a 1 per cent drop from last year.
Kia attributed its improved performance to an increase in its average selling price from its expanded portfolio of eco-friendly vehicles, such as hybrids, as well as SUVs and minivans.
Kia said it sold 93,000 hybrid units and 44,000 electric vehicles, up 30.7 per cent and 7.9 per cent from last year, respectively.
The company plans to utilise new models and high-profit models, such as the Carnival hybrid and K4, to sustain profitability in the US market.
In Europe, Kia plans to enhance its EV lineup to strengthen its brand image as a leader in the competitive EV sector.