KGM’s exports of eco-friendly vehicles surge 130%... Cumulative revenue tops 3.3 trillion won

[Financial News] KG Mobility Corporation (KGM) continued its growth, with revenue for the first three quarters of this year exceeding 3.3 trillion won. Despite a slowdown in domestic sales and production-line maintenance to prepare for new model launches, revenue rose 5.8% from a year earlier, supported by expanding exports and increased sales of eco-friendly vehicles. Overseas markets, in particular, drove performance as exports of eco-friendly vehicles surged by more than 130%.
KGM said on the 4th that it recorded sales of 81,033 vehicles, revenue of 3.3129 trillion won and operating profit of 700 million won for the first three quarters of this year. Revenue was up 5.8% from 3.1321 trillion won in the same period last year, while the company remained profitable.
Cumulative sales fell 1.6% from the same period a year earlier. The decline was affected by production-line maintenance in preparation for the launch of the new SE-10 and by weaker domestic demand. Profitability was also affected by the fixed-cost burden of the production-line maintenance and increased foreign-exchange translation losses following a decline in exchange rates.
Overseas sales, however, supported performance. Cumulative exports through the third quarter of this year reached 52,217 vehicles, up from the same period last year, when exports hit their highest level in 11 years. Exports’ share of total sales also rose 1.9 percentage points, from 62.5% last year to 64.4% this year.
Exports of eco-friendly vehicles, including hybrid electric vehicles (HEVs) and electric vehicles (EVs), stood out. Cumulative exports of eco-friendly vehicles through the third quarter reached 25,975 units, surging 130.5% from the same period a year earlier. Their share of total exports also grew from 21.9% last year to 49.7% this year. In other words, one out of every two vehicles exported was an eco-friendly vehicle.
Western Europe and the Middle East and Africa led growth by region. Sales in key Western European markets, including Italy, Portugal, Belgium and Spain, were strong. In the Middle East and Africa, sales in Türkiye rose 41.2% year on year to 15,964 vehicles, driving export growth.
KGM plans to sustain export growth by targeting emerging markets. It officially launched its brand in Myanmar in August and entered Ethiopia in September through the knock-down (KD) system. The company plans to expand its KD business to Saudi Arabia, Vietnam, Cambodia and other markets.
The company is also seeking to recover domestic sales. For the 2026 Korea Sale FESTA, it is offering discounts on a total of 1,000 vehicles and holding events such as autumn test drives. It aims to improve profitability through the successful launch of the new SE-10 and improvements to its cost structure.
A KGM official said, "Short-term earnings were affected by production-line maintenance to prepare for new models and foreign-exchange translation losses, among other factors, but we maintained revenue growth and cumulative operating profit on the back of increased exports and a higher share of eco-friendly vehicles." The official added, "We will continue to improve profitability by stepping up our efforts to target existing markets, including Türkiye, and emerging markets, and by launching the new SE-10 and improving our cost structure."

[email protected] Kim Dong-ho Reporter