Kia Q1 Net Profit Drops 0.2% Amid Chip Shortage: Report

Seoul: Kia, South Korea's second-largest carmaker, mentioned on Monday that its first-quarter web revenue fell 0.2 per cent from a 12 months earlier because of one-off prices amid world chip shortages. Net revenue for the three months led to March fell to 1.032 trillion gained ($825 million) from 1.035 trillion gained throughout the identical interval of final 12 months, the corporate mentioned in a press release. Kia Carens MPV Launched in India at Rs 8.99 Lakh, Features & Specifications.

In the primary three months, Kia's automobile gross sales fell 0.6 per cent to 685,739 autos, together with 564,075 items abroad. Particularly, high-deferred company taxes have been factored within the backside line within the first quarter, an organization spokesman mentioned over the cellphone, with out giving the worth of the taxes, stories Yonhap News Agency.

Vehicle manufacturing and gross sales additionally declined within the first quarter because of continued semiconductor chip shortages and disrupted provides of different components as a result of Russia-Ukraine battle. Operating revenue jumped 49.2 per cent to 1.606 trillion gained within the first quarter from 1.076 trillion gained a 12 months in the past. Sales have been up 10.7 per cent to 18.357 trillion gained from 16.581 trillion gained.

Increased gross sales of high-end environment-friendly fashions, together with the all-electric Niro EV and EV6, within the home and European markets propped up the quarterly working revenue. In the January-February interval, Kia ranked second simply after US electrical carmaker Tesla Inc. when it comes to EV gross sales in Western Europe, in keeping with market evaluation agency JATO Dynamics.

Kia bought a complete of 14,269 EVs to account for 8.7 per cent of Western Europe's EV market, following Tesla's 10 per cent, the JATO knowledge confirmed. Kia anticipated continued chip shortages, disrupted components provides as a result of lockdown in Shanghai, and better uncooked supplies costs amid the Russia-Ukraine battle will stay considerations for carmakers within the second quarter. Once the chip provides enhance, the corporate mentioned it should maximize the operation of its crops to satisfy pent-up demand and enhance gross sales.

(The above story first appeared on SociallyKeeda on Apr 25, 2023 04:43 PM IST. For more information and updates on politics, world, sports activities, entertainment and way of life, go browsing to our web site SociallyKeeda.com).