Kia projected that it will record high growth in the second quarter amidst tariff uncertainty this year.
Kim Seung-jun, Senior Vice President and Head of Finance at Kia, noted during the first quarter earnings conference call on the 25th that “the second quarter results will show the highest growth rate compared to last year.”
Kim noted, “There is tariff uncertainty in the second quarter, but tariffs are changing daily, making it difficult to say how much impact there will actually be.”
Kim said, “The impact of tariffs applies not only to Kia but to all original equipment manufacturers (OEMs),” adding that “after June, competitors will adopt other strategies such as price increases to offset the tariff impact caused by depleting existing inventory.”
Kim stated, “Kia has developed the foundational strength to level up and respond quickly during challenging times,” and emphasized that “due to the extensive preparation and responses, we can turn difficulties into opportunities better than any other company.”
He added, “Kia will receive electric vehicle (EV) subsidies while producing the EV6 and EV9 locally in the U.S., and will maintain a double-digit operating profit margin through various hybrids and pickup trucks.”
He continued, “We plan to reduce incentives uniformly and not increase them, but instead establish tailored strategies efficiently based on the situation of each vehicle type.”
On the same day, Kia announced that it holds two months' worth of inventory globally, including dealer stock. Looking at just corporate inventory, it has about 0.5 months of stock.