Powered by Chinese sales, Kia’s 2Q profits rose 7.7% YoY, to $1.06 billion, barely printing above expectations. Revenue was up 4.4% to $1.168 billion.
Sales in China, positively affected by the island dispute between China and Japan, were up 22% driven by demand for the K3 sedan (Forte) as Chinese consumers continue to boycott Japanese makes. Kia is also enjoying prosperity in Europe even as rivals struggle, sales in Europe were up slightly, 1.5%. In Kia’s biggest market, the States, sales fell 0.2%, compared to an industry average of +8.5%.
Kia is still moving cars at a decent clip although the 19% increase in incentives is telling of the climate the automotive industry continues to operate in. We'll see if the new Quoris is able to boost sales especially in the American market, although still plagued by QC issues.