Kia Aims to Boost U.S. Market Share Despite Tariff Challenges
Kia Corp plans to increase its U.S. sales and market share in the latter half of the year through the sales of new hybrid and gasoline vehicles, even as rivals hike prices due to tariffs. Despite a slump in operating profit, Kia aims for a significant market share growth.
South Korea's automotive giant, Kia Corp, is targeting a surge in its U.S. sales and market share in the forthcoming months, leveraging its new lineup of hybrid and gasoline vehicles. This strategic push comes amidst expectations of competitors inflating prices to navigate looming tariffs.
The second quarter was challenging for Kia, which, along with Hyundai Motor, forms the third-largest carmaking entity globally. Their operating profit dropped by a quarter, impacted by a significant loss of 786 billion won ($570 million) linked to U.S. tariffs. Yet, April-June U.S. sales saw a 5% uptick as customers rushed purchases fearing tariff-induced price hikes.
Despite the economic hurdles, Kia remains optimistic about a 7% to 8% boost in U.S. sales for the second half, predicting a rise in market share from 5.1% to over 6%. Key drivers include the Carnival hybrid and K4 small car, even as the company navigates the complexities of U.S. tariff regulations.
(With inputs from agencies.)
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