Seoul: Kia Corp., South Korea's second-largest automaker, announced on Friday that its net profit for the second quarter increased by 2.6 percent from the previous year, despite facing challenges such as U.S. tariffs and geopolitical uncertainties. The company's net profit for the three months ending in June was reported at 2.32 trillion won (US$1.6 billion), up from 2.26 trillion won in the same period last year.

According to Yonhap News Agency, Kia's operating profit experienced a decline, falling 4.9 percent to 2.62 trillion won in the second quarter from 2.76 trillion won a year earlier. However, the company's sales saw a significant rise of 12.6 percent, reaching 33.03 trillion won from 29.34 trillion won. Kia attributed its sales growth to the competitive pricing of its vehicles and the incentives offered in domestic and Western European markets to compete with Chinese electric vehicle brands.

The company also faced challenges from global factors, including rising tensions in the Middle East and the depreciation of the South Korean won against the U.S. dollar. The weaker won increased the cost of won-denominated provisions for global after-sales services, affecting the company's quarterly results.

For the first half of the year, Kia reported a 10.8 percent decline in net profit, amounting to 4.15 trillion won from 4.66 trillion won a year earlier. Operating profit also fell by 16.3 percent to 4.83 trillion won from 5.77 trillion won. Despite these declines, sales rose by 9 percent to 62.53 trillion won from 57.36 trillion won.

Kia's vehicle sales for the first six months reached 1.63 million units, an increase from 1.58 million units, driven by the rising demand for environmentally friendly vehicles. To further boost its sales, Kia plans to expand the production of its mid-size Telluride sport utility vehicle (SUV) for the U.S. market in the latter half of the year.

Additionally, Kia intends to introduce the U.S.-built Sportage Hybrid SUV and the Mexico-built EV3 to the American market later this year, as part of its strategy to enhance its presence in the competitive automotive sector.