Kia Corporation has announced 2021 second-quarter business results reporting a 46.1% increase in global sales compared to the same period last year. In April-June, the company sold 7,54,117 units globally. Markets such as Europe, India, and South America showed a strong rebound in demand compared to the corresponding period in 2020 when they were hit hard by pandemic-related lockdowns.
Continued recovery in global auto demand, alongside strong sales of the company’s RV models such as the Sorento SUV and Carnival minivan, led the solid results despite unfavourable exchange rates. Sales also recovered in the U.S. supported by the ongoing market recovery and strong demand for Kia’s new models. However, sales in Korea decreased 8.2% to 148,309 units.
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Kia anticipates automobile demand to continue improving alongside the ongoing economic recovery from the global pandemic. However, possibilities of lingering impacts of COVID-19 and the ongoing supply issues of semiconductor parts as well as raw material cost fluctuations leave persistent concerns within the industry.
Especially regarding the global supply issues of semiconductor parts, Kia anticipates the shortage to continue in the third quarter of 2021, and that it will take to some time for the situation to fully normalize. Accordingly, the company is taking preemptive measures to minimize business risks. In terms of chip supply, Kia will flexibly adjust its production plans in line with supply status and preemptively secure its component inventory with sufficient orders for a year while looking for alternative chip parts to minimize impact on its output.
Kia will also proactively expand local components production, diversify its supply chain, and strengthen cooperation with various semiconductor partners to prevent the components shortage from worsening. Despite tough market situations, Kia will continue to focus on improving sales momentum and profitability through new models, including the EV6 battery electric vehicle and the recently unveiled all-new Kia Sportage SUV.
