Cumulative sales reach 81,033 units through third quarter

Eco-friendly vehicle share and exports expand

Eco-friendly vehicle exports up 130.5% year on year

SE10 launch preparations accelerate; KD project expands in emerging markets

KGM New Torres [Provided by KGM]
KGM New Torres [Provided by KGM]

KG Mobility (KGM) announced Wednesday that it recorded cumulative sales of 81,033 units, revenue of 3.31 trillion won ($2.47 billion) and operating profit of 700 million won through the third quarter of 2026.

Despite production line maintenance ahead of the new SE10 launch, reduced output volumes and sluggish domestic demand, revenue rose 5.8 percent year on year, driven by a higher share of eco-friendly vehicles, increased export volumes and an improved product mix.

On the earnings side, operating profit declined due to higher fixed costs from third-quarter production line maintenance and expanded foreign-currency translation losses from a weaker exchange rate. Still, KGM maintained a profit on a cumulative basis through the third quarter, recording 700 million won in operating profit.

Cumulative sales through the third quarter totaled 81,033 units, down 1.6 percent year on year, but exports led the recovery and underpinned overall performance. The export share rose to 64.4 percent from 62.5 percent a year earlier.

In export markets, eco-friendly vehicles — hybrids and electric vehicles — posted strong growth. Cumulative eco-friendly vehicle exports reached 25,975 units through the third quarter, up 130.5 percent year on year, lifting the eco-friendly share of total exports to 49.7 percent from 21.9 percent.

By region, Western Europe and the Middle East and Africa drove growth. Sales momentum continued in key Western European markets including Italy, Portugal, Belgium and Spain, while the Middle East and Africa region posted sharp gains led by Turkey, where sales reached 15,964 units, up 41.2 percent year on year.

To expand export volumes, KGM plans to accelerate its push into global markets by building on its brand launch in Myanmar in August and its entry into Ethiopia through a knockdown assembly project in September, with further KD project expansion targeting emerging markets including Saudi Arabia, Vietnam and Cambodia.

In the domestic market, KGM is running promotional campaigns tied to the 2026 K-Sale Festa, offering discounts on a total of 1,000 units across its model lineup.

"Short-term earnings were affected by production line maintenance ahead of the new model launch and foreign-currency translation losses, but we sustained revenue growth and maintained a cumulative operating profit through the third quarter on the back of rising exports and a higher eco-friendly vehicle share," a KGM official said. "We will continue to improve profitability by expanding exports through both existing markets such as Turkey and new market initiatives, strengthening our domestic response, successfully launching the SE10, and improving our cost structure."

Meanwhile, KGM has been broadening customer brand touchpoints through a range of marketing activities, including an industry-academia collaboration with Kookmin University in which students develop creative mobility design ideas that are then showcased at a graduation exhibition.


likehyo85@heraldcorp.com