According to media reports, Kia's market value has now surpassed Hyundai for the first time since 2001. The carmaker is now South Korea's fifth-most-valued stock at $31 billion.
Kia's stock continues to surge, especially after announcing its fourth-quarter earnings and 2024 guidance last month. The carmaker is said to be targeting a 3.4% operational profit growth and a profit ratio of 11.9% in 2024.
Reports state that one of the main reasons for the growth of Kia is the introduction of its lower-cost EVs in global markets. The carmaker has lined up a number of price-competitive EVs including the likes of the EV3. EV4 and EV5. YongJun Jung, Analyst, Shinhan Securities, predicts that Kia's EV sales will grow by 50% this year to 270,000 units.
Kia stated that despite the "difficult business environment" expected in 2024, it hopes to keep the momentum up by launching affordable EVs. Kia plans to "pursue sustainable growth by strengthening our leadership in the eco-friendly car market."
Hyundai saved Kia from bankruptcy in 1998, before forming the Hyundai Motor Group in 2000 after buying out the brand. The Hyundai Motor Group also consists of Genesis which became a standalone luxury marque in 2015.
Source: Bloomberg