Kia hikes volume target 4% as China drives profit
Kia Motors Corp. hiked its 2013 volume target in China 4 percent to 520,000 units after South Korea's second-largest automaker posted higher second-quarter profits on robust sales growth in China.
Kia's sales in China have jumped 22 percent in the first half on higher demand for the K3 sedan, helping to counter falling demand in the United States and South Korea. Net income excluding minority interests rose nearly 8 percent to 1.18 trillion won (6.42 billion yuan), the company said. Revenue increased almost 5 percent to 71.33 billion yuan, reflecting higher sales and better pricing in China, Kia said.
"Kia exceeded expectations ... thanks to increasing sales in China," said Lee Sang Hyun, an auto analyst at NH Investment & Securities Co. "Moving forward, things look good for the company, especially with its new model of the Soul wagon scheduled to be unveiled in the second half."
Kia revised its sales target in China for this year to 520,000 units or more, up from 500,000 units, CFO Park Han Woo said during a conference call in Seoul. Production will increase next year when its third plant in the country starts operations as early as March, Park said.
"Kia exceeded expectations ... thanks to increasing sales in China," said Lee Sang Hyun, an auto analyst at NH Investment & Securities Co. "Moving forward, things look good for the company, especially with its new model of the Soul wagon scheduled to be unveiled in the second half."
Kia revised its sales target in China for this year to 520,000 units or more, up from 500,000 units, CFO Park Han Woo said during a conference call in Seoul. Production will increase next year when its third plant in the country starts operations as early as March, Park said.
