Kia, World’s 3rd-Biggest Automaker, Takes $570 Million Tariff Hit In Q2

South Korea's Kia Corp. said it aims to boost U.S. sales and market share in the second half of the year, driven by demand for new hybrid and gasoline vehicles, as some rivals are expected to raise prices to cope with tariffs, Jenny McCall reported for Yahoo Finance.

Despite the tariff headwinds, Kia’s U.S. sales rose 5% from April to June. I Photo: Kia

Kia—together with affiliate Hyundai Motor, the world’s third-largest carmaker—reported that its operating profit fell by 25% in the second quarter after absorbing a hit of 786 billion won ($570 million) from U.S. tariffs.

The company also warned of a potentially larger impact in the second half.

Despite the tariff headwinds, Kia’s U.S. sales rose 5% from April to June, as consumers accelerated purchases in anticipation of higher vehicle prices. The automaker credited strong performance from its new Carnival hybrid SUV for the growth.

Kia said it aims to increase its U.S. sales by 7% to 8% in the second half, even as overall auto sales in the U.S. market are projected to decline by 10%. This would raise Kia’s market share to over 6%, up from 5.1% in the first half.