Hello, this is Sangya Yoon, Head of Investor Relations at Kia. I'll begin with business results for the fourth quarter of fiscal year 2025. I'll commence with the sales summary, followed by the consolidated income statement, revenue and earnings analysis, the consolidated balance sheet, and finally, Kia's business plan for 2026. First, we will begin with the global retail sales performance. In Q4 2025, global industry demand declined by 1.6% year-on-year due to mounting pressure on consumer purchasing power in the U.S. market, following the expiration of IRA subsidies at the end of September, and rising vehicle prices and budget constraints on the trade and policy in certain local regions in China.
Kia's global retail sales witnessed a 1.6% growth year-over-year, led by higher sales centered around the Sportage HEV and Carnival HEV in the U.S., and increased sales led by the Sonet in India following the goods and services tax rate cuts, lifting our global market share by 0.1 percentage point to 3.3%. By market, domestic sales dropped by 5.9% year-over-year, reflecting deferred year-end demand due to the extension of the individual consumption tax cuts. In the U.S. market, in response to changing market conditions such as tariffs, the expiration of EV subsidies, and easing environmental regulations, we leveraged our flexible production system and focused sales efforts more on ICE and HEV models than on EVs. As a result, despite an overall decline in market demand, our sales increased by 1.7% year-over-year, resulting in our market share expanding to 5.3%.
In the Western European market, despite continued strong sales of the EV3, fourth quarter sales were somewhat subdued due to the impact of the discontinuation of the Ceed and the aging of the existing ICE lineup, including the Sportage. However, we expect sales to recover in 2026, driven by the full-scale contribution of newly launched models such as the EV4 and EV5, released in the fourth quarter. In the Indian market, the September 22nd Goods and Services Tax rate cuts drove a sharp surge in A-segment SUV demand. Benefiting from these tax incentives, our Sonet and Carens lifted sales 41% year-on-year and took our market share to 5.7%.
Major emerging markets such as Central and South America and CIS markets reported sales growth driven by increased supply from expanded export volumes from Chinese plants by the start of mass production at the Kazakhstan plant in October and increased CKD volumes in Uzbekistan. Next is our electrified vehicle sales summary. In Q4 2025, electrified vehicle sales increased by 13.2% year-over-year to 186,000 units, driven by Kia's powertrain strategies aligned with shifting demand in each market, amid strong demand for HEVs in the U.S. market and EVs in Western Europe. As a result, the share of electrified vehicles in our global sales expanded by 2.4 percentage points from 21.5% in Q4 2024 to 23.9% in Q4 2025, and the sales mix for HEVs and EVs accounted for 15.6% and 7%, respectively.
HEV models continued to lead the growth of our electrified vehicle sales, driven by strong demand in the U.S., with global sales of the Sportage HEV and Carnival HEV increasing by approximately 16,000 units and 5,000 units respectively. Consequently, Kia's market share in the U.S. HEV segment nearly doubled, expanding from 4.2% on a full year basis in 2024 to 8.2% in the fourth quarter of 2025. In the EV segment, continued strong sales in Western Europe, together with the introduction of the EV4 and EV5 in the fourth quarter, contributed to a 0.3 percentage point increase in Kia's EV market share in Europe from 3.2% for full year 2024 to 3.5% as of Q4 2025. The following is the regional wholesales performance. In Q4 2025, Kia's wholesales decreased by 0.9% year-over-year to 763,000 units.
Looking at the key regions, North America saw a 2.5% growth year-over-year to 258,000 units owing to expanded shipments of the Carnival and Sportage HEV based on robust HEV-led demand and stronger SUV-focused wholesale volume. In Europe, despite continued strong sales of the EV3, sales volume declined by 10.2% year-over-year to 119,000 units due to the discontinuation of the Ceed, production adjustments for the new EV2 launch at our Slovakia plant, and heightened competition. In India, sales grew 40.9% year-over-year to 74,000 units, driven by the impact of the GST rate cuts and strong demand for the Sonet, which benefited from such. Finally, in the rest of the world, such as the CIS region, sales increased nearly 30% year-over-year owing to increased sales of the Sportage produced at the Kazakhstan plant and the Sonet produced at the Uzbekistan plant. Next is the consolidated income statement.
In Q4 2025, revenue rose 3.5% year-on-year to KRW 28.088 trillion as higher ASP resulting from continued price effect and favorable FX effect outweighed the decline in consolidated sales volume. Operating profit reported KRW 1.843 trillion, down 32.2% year-on-year, as the benefit from the retroactive application of the 15% Korea-U.S. tariff effective November 1st was offset by the temporary burden of a 25% tariff on U.S. inventory through October and November and higher incentives in overseas markets. Pretax profits stood at KRW 2.111 trillion and net profit at KRW 1.471 trillion, down 13.6% and 15.5% year-on-year respectively.
Next, operating profit analysis. Breaking down the evolution of operating profit by factor. First, some impact of U.S. tariffs continued into the fourth quarter, reducing profit by KRW 1.022 trillion. Increased spending for competition in the North American and European markets resulted in a KRW 342 billion year-over-year increase in consolidated incentive, reducing earnings. In addition, vehicle sales declined by more than 8,000 units year-over-year, resulting in a KRW 132 billion decrease in earnings. However, the PP mix turned positive in the fourth quarter after having been a negative factor until the third quarter, reflecting an improvement in our fundamentals. Even amid a challenging business environment, Kia improved profit by KRW 90 billion through a price effect driven by enhanced product value, and efforts to mitigate the impact of U.S. tariffs resulted in approximately KRW 108 billion in cost savings.
Lastly, the continued favorable impact of the Korean won USD exchange rate increased earnings by KRW 424 billion, and as a result, operating profit for the fourth quarter of 2025 amounted to KRW 1.843 trillion, down KRW 874 billion YOY. Next, revenue analysis. First, based on the regional sales share data on the left, consolidated revenue increased by 3.5% YOY. In North America, revenue increased on the back of higher wholesale volumes and higher ASP centered on HEVs, lifting its share by 1.3 percentage points from 43.3% in Q4 last year to 44.6% in Q4 2025. In terms of domestic sales, despite a 2.1% increase in ASP, revenue declined by nearly 6%, leading to a 1.2 percentage point decrease in its share YOY to 17.6%.
Despite a decline in sales compared to the fourth quarter of last year, Europe's revenue share remained at a similar level to the previous year, supported by a relatively higher share of EV sales and a favorable one euro exchange rate. India's revenue share expanded to approximately 5%, driven by sales growth of over 40%. Now moving on to the ASP improvements on the right. The global ASP for Q4 2025 increased by 4.7% YOY to KRW 39.1 million, driven by the expanded HEV, EV sales centered on advanced markets in the U.S. and Europe, along with positive exchange rate effects. Domestic ASP also increased by 2.1% YOY to KRW 35.1 million, continuing its growth trend. Next, cost of sales and SG&A.
Despite revenue expansion driven by favorable foreign exchange rates, rate effect, the cost of sales ratio for Q4 2025 rose 2.9 percentage point YOY to 81.7% due to the previously mentioned impact of U.S. tariffs amounting to KRW 1.022 trillion. Without the tariff impact, however, the Q4 cost of sales ratio is estimated to have slightly improved YOY to 78.1%. The SG&A ratio for Q4 rose 0.6 percentage point YOY to 11.8%, mainly driven by increased volatility in the Korean won U.S. dollar exchange rate at quarter end and the reflection of quality costs, which led to a 0.8 percentage point YOY increase in the sales warranty expense ratio. Next, non-operating income. First, equity method results posted a loss of KRW 72 billion in the fourth quarter of 2025, following a loss in the same period last year.
However, results improved by KRW 79 billion YOY, driven by absence of one-off impairment losses recorded in the fourth quarter of last year, and improved performances at affiliates. Financial and other non-operating income improved by KRW 462 billion YOY to KRW 341 billion, reflecting FX gains driven by quarter-end exchange rate movement, as well as improved gains on disposals of tangible assets. As a result, net non-operating income/expense for Q4 2025 increased by KRW 541 billion YOY to KRW 268 billion. Next, the balance sheet. As of year-end 2025, total assets amounted to KRW 98.979 trillion, an increase of KRW 6.223 trillion compared to year-end 2024. The key drivers behind the asset expansion were increases in tangible and intangible assets, inventory assets, and equity method investments.
Total liabilities at year-end 2025 amounted to KRW 37.789 trillion, an increase of KRW 879 billion compared to the year-end of the previous year. Despite a reduction in borrowings of KRW 890.2 billion, total liabilities increased compared to year-end 2024, mainly due to increases in accounts payable and warranty provision. Total equity stood at KRW 61.19 trillion, an increase of KRW 5.35 trillion compared to the year-end of the previous year, and the debt ratio improved by 4.3 percentage point YOY to 61.8%. Lastly, our business plan for 2026. For 2026, Kia targets wholesale sales of 3.35 million units, representing an increase of 214,000 units YOY or 6.8% growth. Retail sales are also expected to grow 6.5% YOY in line with wholesale growth.
In the U.S., we plan to drive sales growth centered on SUV and HEV, supported by full model changes of our core models, the Telluride and Seltos ICE, along with the addition of new HEV variants for both models. In Europe, with the early year launch of the EV2, we will complete our mass EV full lineup spanning EV3, EV4, and EV5, and focus on a full recovery in sales, further strengthening our EV leadership. In India, we will continue to strengthen our market leadership by targeting premium SUV customers through the new Seltos. For 2026, Kia's sales revenue target is KRW 122.3 trillion, representing a 7.2% growth YOY. Operating profit is targeted at KRW 10.2 trillion, an increase of KRW 1.1 trillion YOY, with an operating profit margin of 8.3%.
In 2026, despite the application of a 15% U.S. tariff and an expected increase in incentives amid the intensifying competition, Kia will pursue robust top-line growth driven by ambitious volume growth targets and ASP improvements, supported by increased HEV and EV sales, while continuing to enhance profitability through multifaceted cost reduction efforts. More details on our 2026 business plan will be provided at the CEO Investor Day scheduled for early April. This concludes the earnings results for the fourth quarter of fiscal year 2025. Thank you.
Next, CFO, Senior Vice President Seung Jun Kim will deliver a review on Kia's earnings for the fourth quarter of 2025 and business outlook for 2026.
Hello, I am Seung Jun Kim from Kia. First of all, we'll talk about the fourth quarter and year, the performance, and also the business plan for 2026, and also the shareholder returns. We will divide those three buckets and explain each and every one of them. First, about the fourth quarter and 2025 performance. Here in Q3, as we have explained during the performance results, we have went on a bottoming out, but now we are on a recovery stage. However, as Head of IR, Young Lee has said, the tariff being affected in 15% was November 1st, but due to the inventory in October and November, it was after December that the 15% was clearly shown.
In Q4, compared to what we had thought, the reason why we didn't go as much as we expected was because the Q4 sales, as we have explained, in domestic and Europe, compared to the year before, we were a little bit low. In domestic, due to the individual consumption tax rate extension, there was an impact and also there was an intensified competition of our competitors and the incentive strategy impacted in Kia also. For EV transition, we have a later full EV launch, and that impact did not show in the fourth quarter of 2025. That impact will show in 2026. That's why we have reflected it in our business plan for 2026. Our trough was in Q3 2025, but we have turned around in our recovery stage for Q4 2025. In 2026, we expect our earnings to normalize.
I don't know if normalize is the term to use, but from Q1 2026, we believe that we'll be able to show better performance regarding this. In relation to our business plan for 2026, we will explain. Our 2026 business plan, we do not think that the market conditions will be much different from 2025. However, Kia believes that there will be about 6.8% or up to 7% growth. We can divide it into Europe and the United States. In the United States, the first time in seven years, the Telluride model has been newly released, and we have competitiveness in that model. And also, there's the hybrid model that we have scheduled for release. Therefore, we believe that it will play a role as a cash cow.
From fourth quarter of 2025, Carnival hybrid is also increasing in our supply, and also it will impact in our sales globally in 2026. We had the Seltos that released recently, not only in the U.S., but for Seltos domestically and in India and all over the world, from profitability perspective, is a big contributor to Kia's growth. However, in Europe, in 2025, we were lacking in some extent, but in 2026, compared to 2025, we believe that we'll be able to achieve 10% growth. The reason is because we did launch the EVs in 2025, but they were usually at the end of the year. In 2026, we believe that we can sell in full. At the beginning of the year, we have EV2, which is a low-cost model that is deemed to be released.
Therefore, according to the EV transition period, we will be able to supply accordingly. Also for the Ceed, the ICE has been discontinued. As the K4 that was produced in Mexico was being sold in Europe, the ICE model and EV model balance was being met, and we believe that that will be able to drive growth. According to this, the electrified vehicle, EV new cars increasing will be able to impact our revenue growth in 2026. Also, the earnings compared to the year before, we'll be able to see a significant growth. It may seem aggressive growth or conservative growth, but we believe that in sales, we will be able to achieve profitability growth. As I said, the Telluride and the cash cow models have been released.
Backed by these models, we will continue on enhancing our profit, product value, and also our financial stability will also be increased. We will reduce our debt and also have our cash increase. That will be our 2026 business plan.
I want to move on to our shareholder return policy. From 2025, we mentioned that we would achieve TSR of 35% for three consecutive years. Last year there was the tariff impact partially, but our fundamental policy towards our shareholders and our promises to our shareholders should be met regardless of these external headwinds. Therefore, we are going to keep to our original promise that we've already made. Whatever the situation may be, in Kia we are going to show increasing sales, and we believe that that is right since our shareholders have shared our burden and supported us. Therefore, we will increase the dividend per share from KRW 6,500 to KRW 6,800, and therefore the TSR is going to be kept at 35%. Through our efforts, shareholders and investors may be able to see Kia as a credible company.
Once again, I'd like to stress that we are going to keep to our promise. If our cash increases, then we will make reinvestments internally, and we will also provide some of that free cash balance to our shareholders as well. We will make reasonable decisions. Thank you very much. Next, we will begin the Q&A session. Please follow the instructions from the operator.
The first question will be provided by Yoon Young Lim from Samsung Securities. Please go ahead with your question.
Yes.
Hello, I am Eun-Young Lim from Samsung Securities. I have two questions. The first question is on the tariff. You have explained about the tariff, but in the morning there was the Hyundai Mobis earnings results that was announced to the public, and they have said that all of the tariff impact in the manufacturing parts have all been recovered. When you have announced your impact of the tariff, you included the numbers of giving back the cost of the parts included in your statistics and regarding the 3.75%, does it also include the duty drawback of the parts in the tariff? The second question is regarding the CapEx. Kia has announced about the investments in robotics and also physical AI. Although Kia's cash flow is very good at the moment, they cannot help but the investments with this.
This year, what are your plans for CapEx? Will there need to be additional financing for this?
첫 번째, 관세 질문은요. 이게 현금 기준하고 발생 기준하고 약간 혼선이 있다 보니까 여러 가지 숫자가 좀 왔다 갔다 하지만 간단하게 어느 정도 전체적으로 정리가 됐습니다. 그래서 완성차 업체, 그다음에 부품 업체가 내는 관세는 크게 세 가지 카테고리로 나뉘게 되고요. 저희가 완성차를 수출할 때 내는 관세 부분이 있고요. 그다음에 부품 관세가 있는데, 부품도 핵심 부품에 대한 관세와 일반 부품에 대한 관세가 있습니다. 근데 핵심 부품에 대한 관세는 MSRP 3.75% 환급 조항에 의해서 이미 그 framework이 확정이 됐기 때문에 핵심 부품에 대한 관세는 실질적으로 부담이 0입니다. 그래서 이미 그 부분들은 핵심 부품에 대한 관세 부담은 손익계산서에 나타나지 않고 있고요. 그게 부품사든 완성차든. 다만, 일반 부품에 관한 부분들은 역시 환급이 되지 않기 때문에 그 부분들은 부담으로 남게 됩니다. 그래서 최종적으로 놓고 보면 완성차가 수출을 할 때 내는 관세, 그다음에 저희가 미국 현지 조립을 위한 부품을 수출할 때 일반 부품에 대한 관세, 이 두 가지 부분이 남고요.
그 부분에 대한 부품 관세는 이미 저희가 직접 부품을 수출할 때 내는 부분은 저희가 부담을 하고, 그다음에 저희가 vendor들을 통해서 Georgia Plant에서 받게 되는 부품 관세에 대해서는 그거는 가격에 이미 반영이 100% 다 되어 있습니다. 그래서 실제로 앞으로 관세율이 바뀌지 않는 한, 이 부분에 대한 회계적 인식이라든지, 이 부분이 바뀔 여지는 거의 없고요. 그래서 실제 저희가 이 부분을 다 고려했을 때, 25년도에 저희 관세 총 부담이 약 2.9조 정도 되고요. 올해는 아시다시피 저희 미국 물량도 늘어나고, 그다음에 전년도에 저희 실질적으로는 5월부터 납부했던 관세 부담이 올해 온기로 반영되기 때문에 저희가 추산하기로는 약 한 3.3조 정도로 예상을 하고 있습니다. 그 부분 중에 완성차 증분이 대략 한 2천억, 그다음에 부품 증분이 대략 한 2천억 정도 됩니다. 그래서 저희 지금 말씀드린 전체 관세 중에서 전체 대략적으로 얘기해서 한 80%는 완성차 관세, 한 20%는 일반 부품에 대한 관세 부담이다.
그리고 이 부분들에 대한 전체적인 framework들은 이제 거의 완성이 됐고, 회계처리나 환급 규정이라든지, 이런 부분에 대한 혼선은 따로 없습니다. 다만, 남아있는 부분이 멕시코에서 가는 저희 관세 중에서 U.S. Content에 대한 관세 환급분이 아직 미정으로 남아있는데 이 부분들은 1분기 중에 어느 정도 확정이 될 것으로 보이고요. 만약에 그 부분이 되면 저희가 그 부분에 대한 환급을 인식할 수는 있습니다. 그 부분에 대한 부분은 따로 언급이 될 거고요. 다만, 나머지 전체 관세 framework들은 지금 말씀드린 바와 같이 정리가 됐다고 보이고요. 두 번째 CapEx에 관한 부분들은요. CapEx는 저희가 아마 이 부분은 조정 작업이 있겠습니다만, 당연히 저희가 계속 롤링 기준으로 중장기 CapEx를 산정을 하기 때문에. 근데 현재 저희가 세웠던 중장기 기준은 CapEx 기준으로 25년에 5.7조, 그다음에 26년에 5.6조, 27년에 5조 정도로 되어 있고요. 그리고 CapEx에 대한 매출액 비율도 외형 성장이 계속 지속됨에 따라서 25년에 5.1%, 26년에 4.3%, 그다음에 27년에 3.5%로 줄어드는 걸로 지금 전반적인 계획이 잡혀 있습니다.
그래서 당연히 자율주행이라든지, 로보틱스라든지, 저희 그룹의 핵심 미래 사업 역량에 대한 부분들에 대한 조정 작업 또는 추가적인 예산 배분이 있을 수도 있습니다만, 만약에 그런 부분이 반영된다고 하더라도 전체적으로 저희가 갖고 있는 어떤 이익 창출 체력이라든지, 현금 창출 능력에 비해서 CapEx는 충분히 감당 가능한 부분일 것이라고 보고 있습니다. 그리고 free cash flow에 대해서도 저희가 지금 김준일님이 말씀하셨습니다만, 외형 성장에 따른 이익 창출 능력을 계속 확대함으로써 저희가 이익 창출 능력과 free cash flow 창출 능력을 갖다 확대한다라는 기조를 갖고 있고, 저희 예상으로는 아마 내년도 정도 되면 관세 이전에 저희 free cash flow 창출 능력을 갖다 회복할 수 있을 것으로 보입니다. 그러다 보니까 저희가 지금 CapEx를 감당할 수 있는 현금 여력이라든지, 그다음에 저희 전체 외형에서 CapEx 비율은 전체적으로 감당은 가능한 수준으로 저희가 판단하고 있다고 말씀드릴게요.
First, regarding the tariffs, I think that the cash basis and the accrual basis would be different. If we look at the tariffs that are impacting the OEMs and the parts, it can be divided into three parts. First is the OEM that pays for the tariffs when they export to the country. Second is for the parts tariff, and this could be divided into two parts as well, for the key parts as well as the general parts tariff. Regarding the MSRP, we have the 3.75% refund provision that we have, but that is already been burdened, and so it does not reflect additionally into our income statement. In regards to our parts and OEMs, so there will be impacts of only the general parts that have not been refunded yet.
The two that it will actually be burdened by the OEMs would be the OEMs exports to the United States and also the general parts that will also be burdened. Also, for the general parts, there are exports that we do directly ourselves, which we take the burden of, and also there's the exports that are done by the vendors. It has also been 100% reflected in our pricing, therefore, we do not believe that there will be any changes in the acknowledgment in our accounting, unless there's any changes to the tariff amount. If we consider the 2025 tariff total burden, it was KRW 2.9 trillion.
Also, if we consider in mind that the U.S. volumes will go up this year, we believe that there will be a full reflection of the tariff that has been burdened in May, which is about KRW 3.5 trillion. 80% of the tariff is burdened by OEMs, and 20% will be the general parts tariffs that will be refunded. Because it has been 100% being reflected, we do not think that there will be any confusion now going forward. Regarding the exports from Mexico and the tariffs from Mexico, we believe that we have to wait until Q1 in order to see how much refunds will need to be done. After the Q1 is over, we'll be able to know a little bit better.
Second question regarding CapEx, adjustments will be needed based on rolling basis in the mid to long-term calculation, based on the mid to long-term in 2025. In 2025, we have our calculations that has KRW 5.7 trillion. For 2026, KRW 5.5 trillion, and in 2027, KRW 5 trillion. Based on our top-line growth, we have our 2025 set as 5.1%, 2026 at 2.4%, and also 2027, 3.5%. Although our group has announced our plans to invest in autonomous vehicles and also AI, and additional investments may be needed.
However, even if they are reflected, we believe that we have the fundamentals very solid in place that we are able to take care of that CapEx increase. Regarding the cash flow as well, as our Senior Vice President has announced, we have increased our generational core, generational business capabilities, therefore, we believe that we will be able to go to the extent that we can take care of the increase in the CapEx.
Next question, please.
The following question will be presented by Yong-Kwon Moon from Shinhan Securities. Please go ahead with your question.
Hello. I am Moon Yong-kwan from Shinhan Securities. Thank you for giving me the opportunity to ask this question. I'd like to first of all ask about the 2026 sales target. It seems like there's a launch of EV and Seltos, and in regions like Europe, you're targeting for 11%. In APAC, you're targeting for 13% sales growth, and that is seemingly above the industry average. You're targeting to go above the industry. However, when we look at these regions, there has been very aggressive entrance of the Chinese OEMs recently. In the fourth quarter, I'd also like to ask about how much the incentives have played a factor, because other than the U.S., it's very difficult to track the incentive status going on.
I'd like to ask how the fourth quarter incentive has differentiated from the year before on the YOY basis, other than the U.S. I have two questions regarding the 2026 sales target as well as the incentives, and also how much the incentives will be impacting the sales target of 2026.
중국 업체들의 경쟁이 들어오는 거는 정확하게 보셨고요. 저희하고 기본적으로 가격 차이가 큽니다. 근데 이 가격 차이를 전부 다 인센티브나 가격으로 저희가 전가할 수는 없기 때문에 간략하게 말씀드리면 2024년 대비 25년도 인센티브 증가가 금액으로 대당으로 약 20만원, 10% 정도 증가 요인이 있었습니다. 또한 2026년 사업계획 수립 때도 비슷한 수준의 인센티브 증가를 저희 사업계획에 반영을 했고요. 특히나 유럽 부분은 중국 업체뿐만 아니라 유럽 업체들의 가격 경쟁이 심화되고 있기 때문에 그 부분에 대한 대처가 없이는 유럽에서의 이런 판매를 늘려가는 전략이 유효하지 않다고 판단을 했고요. 그래서 그 부분에 대해서는 일정 부분 인센티브 증액은 있었습니다. 근데 이 인센티브 증액이 판매 대수 증가에 어느 정도 임팩트가 있었냐라고 하는 부분에 대해서는 제가 명확하게 구분을 하기는 쉽지 않을 것 같고요. 다만 미국, 유럽, 그다음에 인도 이 부분에 있어서, 특히나 인도 부분에 있어서는 인센티브의 큰 변동 없이 저희가 셀토스라든지 이런 신차 출시를 통해서 물량을 늘려가는 계획을 잡았고요.
유럽이 10%가 넘는 물량 증가의 일정 부분, 인센티브 증가도 일정 부분 저희가 계획에 반영해 놓았다고 보시면 될 것 같습니다.
Thank you very much. Regarding the question on the Chinese OEMs. Yes, you have seen correctly. The competition is intensifying from Chinese OEMs. The price difference between us and Chinese OEMs is quite large. However, we are not thinking of offsetting all of their impact through giving more incentives and through price transfers. Compared to 2024 and 2025, to put it roughly, per unit, the incentive increased by 10%, which was around KRW 200,000. In 2026, when we set the business plan, we also set it at a similar rate. The incentive increased at a similar rate to last year. In Europe, you also have to think about the fact that there's not only Chinese OEMs in the competition. There is the European OEMs that are very aggressive in their sales promotion.
Therefore, we need to deal with the European OEMs as well in that market, and to increase our sales, yes, we have to increase our incentive ratio. However, when thinking about the direct impact that incentives have had on the actual sales unit, it's very difficult to say, especially when we think about countries like the U.S. and the regions like Europe and India. Especially for India, there's not been that big of a change in incentives, and we've tried to rather take the new model launch effect with the Seltos, and we have targeted aggressive sales volume increase based on that rather than incentives. In Europe, yes, incentives have played a big part in the volume increase around more than 10%.
추가로 저희 사업 목표에 대한 지역별 자세한 사항 말씀하셨는데, 사실 지역별로 시장 환경은 굉장히 많이 다를 것 같습니다. 그래서 저희가 큰 틀로 놓고 보면 314만 대에서 335만 대, 22만 대 가까운 증량을 저희가 올해 예측을 하면서 각각 기여도를 놓고 보면 선진시장이 한 절반, 그다음에 이머징 마켓이 한 절반 정도 되는데요. 미국과 유럽이 양상이 굉장히 많이 틀립니다. 미국은 잘 아시다시피 EV 보조금이 종료가 되고 환경 규제 프레임웍들이 많이 변하면서 아마 EV 판매 비중은 상대적으로 좀 줄고, 그 자리를 ICE와 하이브리드가 대체하는 양상이 될 테고. 저희는 명확히 큰 틀에서 지금 보면 프로덕트 측면에서 저희 텔루라이드가 12만 대에서 가장 18만 대까지 50% 이상 증량이 될 거고요. 그다음에 셀토스가 신차가 나오게 되면서 전체적으로 신차 라인업들이 보강이 되고. 무엇보다도 하이브리드가 전년 대비해서 미국에서만 저희가 한 90% 이상 성장한, 그래서 전년 대비 한 12만 대 이상 증가해야 되는 25만 대 이상 미국에서 하이브리드 판매를 할 계획입니다.
미국은 신차, 그다음에 하이브리드를 중심으로 한 전반적인 PT 믹스가 굉장히 강화가 되는 그런 모습으로 가게 될 거고요. 반면 유럽은 또 양상이 역시 EV 중심으로 가게 됩니다. 사실 이번 4분기 때 아마 유럽에서 처음으로 EV 판매가 가솔린 판매를 앞지르는 굉장히 중요한 마일스톤이 세워졌고, 이런 방향성들은 유럽에서 계속 지속될 것으로 보입니다. 결국은 유럽에서의 성패는 지금 감소하고 있는 ICE를 어떻게 EV 포트폴리오로 확대를 통해서 메이크업 하느냐, 또는 성장을 만들어 내느냐가 굉장히 중요한 부분들이고요. 저희가 24년에 마이너스가 났던 부분은 지금 ICE 판매의 감소를 EV 라인업들이 충분히 메이크업을 못해서 그렇고요. 잘 아시지만 지금 EV2부터 EV5까지 EV 풀 라인업들이 완성이 되고 거기에 PV5, 그다음에 K4와 셀토스 같은 차종들이 지금 add가 되기 때문에 전체적으로 유럽에서는 저희가 EV를 가지고 충분히 저희 ICE 포트폴리오 교체를 기획을 하고 있습니다. 그러다 보니까 지금 저희가 11% 유럽에서 판매 계획을 세웠지만, 아마 양상은 미국하고 굉장히 다른 모습으로 갈 거다.
특히 지금 유럽에서는 EV 판매 증가가 올해 한 60% 이상으로 저희가 잡았습니다. 그리고 이머징 마켓은 말씀 주셨다시피, 중국하고 경쟁이 굉장히 심한데요. 저희 특히 A/B 세그먼트에서 저희가 소넷과 셀토스 같은 굉장히 강한 SUV 라인업들을 확보를 하고 있고, 그다음에 지금 가격 부분에 있어서는 저희가 지금 중국 공장 생산을 지속적으로 늘려가면서 원가 격차를 갖다가 좁히려고 노력을 하고 있습니다. 그리고 특히 아태 같은 지역, 인도네시아나 말레이시아 같은 지역 거점들을 지속적으로 확보를 하고 있고요. 그다음에 CKD 공장 같은 저희 거점들을 늘려가면서 저희가 product, 그다음에 지금 지역 거점 확대라는 원가 차이를 갖다가 저희가 이머징 마켓의 생산 베이스에서 줄여가는 전체적인 전략을 가지고, 특히 아태 같은 경우는 올해 중점적으로 저희가 시장 확대를 고려를 하고 있고요. 그다음에 CIS 같은 지역도 저희가 카자흐스탄, 우즈베키스탄 같은 지역 생산 거점을 통해서 생산을 확대를 하려고 하고 있습니다. 전체적으로 놓고 보면 아마 미국이 한 4에서 5%, 유럽이 한 10% 이상, 그다음에 전체 이머징 마켓에서 높은 한 자릿수의 성장.
양상은 좀 다르지만 그렇게 저희가 고려를 해서 전체적으로 올해 판매 계획을 작성을 했습니다.
You've asked regarding the different situations of different regions when we look at the 2026 BP. Now, I want to mention that the market environment is very different region by region. If you look at the very big numbers, then yes, we will see that the numbers volume will actually increase from 3.14-3.15 million. However, we have to see that the characteristics are different by emerging market and advanced markets. The share would be emerging markets half and advanced markets half. The situation is especially very different from Europe and the U.S. When we first look at the U.S., the EV subsidy has ended and their regulatory framework has also changed very much. Therefore, we will be focusing on increasing the sales of ICE and HEVs more and decreasing the sales of and the ratio of EVs.
When we look at the very big picture in terms of our product, we will be focusing on increasing the Telluride from 120,000 to 180,000, which is around 50% growth. We will have a new lineup of the Seltos. We will be targeting for a YOY 90% increase when it comes to HEVs in the U.S. There will be an increase of 120,000 going to 250,000. That is the business plan. Basically in the U.S., in a nutshell, we will be focusing on our new car as well as the transition to hybrid-centered sales. Now in the EU, of course, EVs are going to take center front and center. In the fourth quarter, we have for the very first time set the milestone of EV sales outpacing that of gasoline vehicle sales. We believe that this trend will continue on forward.
In the EU, the success of EV lies in how we can really take the lost volume of ICE and we transition that to the EV portfolio. That will be the most important factor for us to gain the upper hand. In 2024, we did post a negative number. However, that was because we were not able to transition the demand from ICE to EVs fully. Now that we have the full lineup of EV2 to EV5, and we also have the PV5 as well as Seltos, we believe that in Europe we do have the strength to now transition away from ICE and take all of that demand into EVs. For Europe, the plan is 11%. The thing is, the numbers may be similar, but the market characteristics is very different when we look at the U.S. and Europe.
In Europe, we are targeting for 80% growth rate in terms of EVs. Now, in emerging markets, the competition is very high from Chinese OEMs. In A/B segment we have the Sonet and the Seltos, and these are very strong SUV segments that we can lead with. Also when it comes to the pricing, we are going to try to expand the production in the Chinese plant to reduce the cost of sales. Also we will be making use of the regional hubs in Asia-Pacific, like Malaysia, and also increasing the ratio of CKDs. Therefore, we will be using our product lineup as well as the regional hubs to target that area and to reduce cost of sales specifically. We're especially thinking of going more aggressive in Asia-Pacific in terms of our expansion.
In CIS, we also have the production base of Kazakhstan and Uzbekistan. Therefore, when we look at the numbers in the U.S., it's 4%-5%. EU, it's more than 10%. For other emerging markets, we believe that we will be able to achieve a high single-digit growth rate.
다음 질문을 받겠습니다.
Next question, please. 다음으로 질문해 주실 분은 메리츠 증권의 김준성 님입니다. The following question will be presented by Kim Jun-sung from Meritz Securities. Please go ahead with your question.
네, 안녕하세요. 메리츠 증권 김준성입니다. 두 개 여쭤보려고 하는데요. 하나는 미주 손익에 대한 부분이고요. 두 번째는 최근에 그룹이 밀고 있는 Car Flow 관점에서의 전환 이야기를 좀 들어보고자 합니다. 미국 손익이 사실 저희 실적에 굉장히 지대한 영향을 미치고 있다고 모두가 알고 있는데요. 올해 판매량은 충분으로 계획하고 계실 것 같고요. 판매 가격 그리고 인센티브의 변화, 그리고 관세의 관점에서 봤을 때 미주에서 벌어들이는 영업이익이 작년보다 개선될 수 있는지 자세하게 말씀을 주시면 도움이 될 것 같습니다. 특히 관세 부분에서 지난해 8달 동안 25%, 올해는 12달 동안 15%라고 가정을 했을 때, 관세 관련된 비용이 줄어드는지, 비슷한지, 늘어나는지 이 부분도 좀 구체화해서 미주 손익 전망, YOY로 개선 가능한지 얘기해 주시면 상당히 도움이 될 것 같습니다. 그리고 시장에서 저희 현대차 그룹을 자동차 그룹을 넘어 로봇 그룹으로 기대하는 부분들이 굉장히 강조되고 있는데요. 올해 같은 경우에 자율주행과 관련된 신형만 모델의 공개나 스마트카 데모의 스펙 공개, 시승 행사, 데이터 확보 및 훈련 시작.
그리고 Atlas 관점에서도 인간 폼팩터의 로봇 쪽에서도 투입 및 훈련 개시가 시작될 걸로 공개가 되고 있습니다. 이 차량 폼팩터 로봇과 인간 폼팩터 로봇 사업 전개에 있어서 현대차와 우리의 차이가 뭔지 좀 궁금하고요. 차이가 있다면 어떤 부분, 없다면 없는지에 대해서 말씀 부탁드립니다. 그리고 사실 지금이 실적 발표인데, 1월에 CES에서 현대자동차가 행사를 했던 것처럼 저희가 오늘 실적 발표 이후에 이런 그룹관 지점에서의 로봇 사업 전개에 대한 공유를 할 수 있는 어떤 이벤트 같은 게 계획되어 있는지도 궁금합니다. 감사합니다.
Hello, I am Kim Jun-sung from Meritz Securities. I have two questions. The first question is regarding the earnings from the United States region. The United States region earnings has a big impact on our performance. This year you probably have scheduled increase for sales. I would like to know the details about the pricing and the incentives and the tariff impact on the earnings and compared to the year before, YOY, how will it be? If we look at the tariffs itself for 8 months, there was the implementation of the 25% tariffs, and for 12 months there will probably the impact of 15% tariffs. What will the cost of tariffs go down or be maintained or go up YOY? The second question is regarding the robotics and the autonomous vehicle related features that HNC Group has announced recently.
There's a lot of people that are expecting a lot with regard to the autonomous vehicle technology and robotics in the Hyundai Motor Group. There will also be the demos and Atlas and a lot of test cars that will be in place and a lot of events. Are there any events that you can explain at the moment to the public? What is the difference between Hyundai Motor Group and Kia's perspective on these features and robotics? Although this is the earnings results announcement call, regarding the CES recently, there was events that happened, and we would like to know if there's any other events that will be happening soon.
먼저 미주 지역 손익에 대해서, 수익성 부분에 대해서 간략하게 말씀을 드리면, 올해 말씀하셨던 것처럼 기아 손익의 많은 부분, 큰 부분을 차지하는 게 북미 쪽의 손익이고요. 그 부분은 2025년도에 이어서 2026년도에도 비슷한, 아니면 조금 더 약간 증가하는 수준으로 저희는 간다고 지금 계획을 수립하고 있습니다. 그 근거는 앞서 말씀드렸다시피 판매 물량 증가가 있고요. 또한 기아의 가장 큰 수익 모델인 텔루라이드의 경우에 12만 7천 대에서 17만 7천 대까지 물량 증량을 하면서 그 부분이 북미 지역의 손익을 유지할 수 있는 큰 부분이라고 보여집니다. 또한 북미 지역의 손익에 한정되는 부분은 아니고, 저희는 기아 같은 경우엔 과거의 호시절에 누렸던 원가 상승은 가격에 부담해서 간다는 그런 것이 아니라, 이제는 경쟁도 심해졌고 다른 지역에서 중국 업체들과의 가격 부분도 있기 때문에 내부적인 원가 경쟁력 확보를 위한 부분에 대해서 많은 노력을 하고 있고요. 제가 여러 번 말씀을 드렸던 것 같은데, 기아는 고정비 절감이라든지, 원가 절감 노력에 있어서 어느 회사 못지않은 절실함을 가지고 움직이고 있습니다.
그래서 이 부분은 꼭 북미뿐만 아니라 기아 자체의 수익성 확보나 수익성 유지를 위해서도 가장 필요한 부분이라고 보여지고요. 그런 것들이 북미 지역의 손익은 충분히 유지할 수 있으리라고 판단하고 있습니다.
Regarding the earnings in the United States region in Kia, the NA region holds a big part in our earnings. In 2025 as well, but in 2026 we expect the same to be true. The basis for this is because of the sales volume increase. Also we have our Telluride, which is a high profit model that will be released in the United States, which we have the volume set as reaching from 120,000 to increase to 180,000. It's not regarding just the NA region, but Kia in our good times had reflected the increase in the costs of sales reflected in the pricing. With the intensified competition with other OEMs, like Chinese OEMs, we cannot reflect all of our costs into our pricing. Therefore, we are putting in a lot of efforts to secure our cost competitiveness.
I have emphasized this several times, but Kia has put in a lot of efforts with a desperate heart in order to reduce our fixed costs as well as reduce our cost in general. It's not just the NA region, but Kia as a total, in order to secure our profitability and maintain our profitability, have done our best in order to reduce our cost and fixed costs. We believe that the earnings in NA region will be maintained.
두 번째 질문은요, 말씀 주신 것처럼 사실 CES를 이번에 번갈아서 개최하다 보니까 이번에는 현대차가 발표를 하게 된 거고요. 잘 아시다시피 자율주행이나 로보틱스는 그룹의 굉장히 중요한 전략 자산이자 미래 사업입니다. 그래서 공동 투자, 공동 개발, 공동 사업화의 형태를 당연히 띠고 있고요. 또 그게 Robotics LAB이든지 아니면 VD Robotics든지 결국은 공동 사업의 형태로 가게 될 겁니다. 그래서 당연히 E-GMP가 그룹의 공동 재산이든 이런 저희 자율주행이나 로보틱스 전반도 당연히 그런 방식으로 가게 될 거라고 우선 말씀을 드리고요. 말씀 주신 대로 저희가 CES를 통해서 처음으로 로보틱스에 관한 전반적인 큰 그림들을 런칭을 했고요. 그래서 저희 올해 하반기 때 실증 사업을 시작을 하고, 그다음에 Google DeepMind와의 협력을 하고, 그다음에 양산 POC, 장기적으로는 상업 양산에 들어가는 큰 그림들을 말씀을 드렸고. 당연히 이 부분에 대해서는 저희가 일회성으로 이 부분을 갖다 제시하는 것보다는, 이 부분에 대해서 progress와 전체적인 roadmap에 대해서 뭔가 정례화된 업데이트를 하는 방식이 필요하겠다라는 부분들을 고민을 하고 있고요.
이 부분들이 계획이 준비가 되는 대로 전달을 할 수 있는 기회를 갖겠습니다. 자율주행에 관해서도 아마 마찬가지가 될 겁니다. 자율주행, 저희가 큰 그림에서 27년에 SDV를 런칭하고 그다음에 거기서 L2++ 단계에 저희가 자율주행을 갖다가 첫 런칭을 한다라는 내재화된 계획을 발표하는 그 계획은 큰 틀에서 변화가 없고요. 그다음에 L4 자율주행에 대해서는 Motional을 통해서 저희가 지금 개발을 해서 특히 올해 말에 본격적인 상업 런칭을 준비하고 있습니다. 그다음에 잘 아시다시피 이 과정에서 저희가 그동안 준비 단계에서 본격적으로 양산화 단계로 넘어가게 되면서, 그 부분을 가속화시킬 수 있는 리더십의 새로운 어떤 부임도 있을 예정이고요. 아마 이런 부분들이 전체적으로 좀 큰 그림들에 대해서 저희가 어느 정도 전달할 수 있는 어떤 상황이 되는 대로, 그 부분도 역시 자율주행에 관해서도 좀 체계화된 방식으로 저희가 어떻게 기술적인 progress가 있는지, 전체적인 roadmap과 그다음에 저희가 어떤 방식으로 이 부분을 상업화하고 그다음에 저희 사업의 어떤 부분으로 가져갈 건지에 대한 부분들은, 로보틱스와 같이 정례화된 방식으로 저희가 전달할 수 있도록 준비를 하겠습니다.
At the CES, we take turns doing the announcement, and it was HMC's announcement this time. In the group perspective, autonomous vehicle technology and robotics is a strategic asset and a future industry, and it is a common investment that we are putting in together, as well as a common development and a common project that we are engaging in together. Through the Robotics LAB and diverse arenas, it's like the E-GMP is our common asset. We have the autonomous vehicle technology as well as robotics as our common asset as well. Regarding the CES, we have been able to show our big picture in our robotics, and at the end of the year, we have the demonstration in place. We are going towards the mass production POCs and also the industry mass production as well.
Rather than showing this and our plans on a one-off event basis, I think that there will be a better place for us to show you the progress on the roadmap through a structured manner. If we have plans in order to have this event in place, after our preparation, we will be able to let you know. Also, it's the same for autonomous vehicle technology. Our big plan is to have the SDV launch in 2027, and also have the L2++ stage of autonomous vehicle technology as an initial launch, and also have our L4 autonomous vehicle technology developed with Motional. This year we have our launching as well. Therefore, after our preparation is over, I think that we are going to go to the stage of mass production development and our leadership is looking into ways to accelerate this.
We have assignment in place for this as well. We will be able to have a structured event where we can regularly tell our audiences about our plans and our big picture.
다음 질문을 받겠습니다.
Next question, please.
다음으로 질문해 주실 분은 대신증권의 김기연 님입니다.
The following question will be presented by Kim Gwi-yeon from Daishin Securities. Please go ahead with your question.
네, 안녕하세요. 대신증권의 김기연 연구원입니다. 질문 기회 주셔서 감사하고 두 가지 질문드리고 싶은데, 우선 첫 번째는 최근에 반도체 DRAM 가격 오르는 거에 따라서 혹시 원가에 영향 크게는 없을지 여쭤보고, 최근에 해외 쪽 얘기들 들어보면 이쪽 관련해서 얘기가 계속 나오는 것 같아서 이 DRAM 관련해서 장기 계약이라든지 물량 확보 측면에서는 어떻게 전략 갖고 계신지 궁금하고. 두 번째는 판매 부진비 관련해서 4분기 때 이 비율 늘어난 거는 혹시 뭔가 특이사항이 있었는지 디테일 설명 부탁드리겠습니다.
Hello, I am Kim Gwi-yeon from Daishin Securities. Thank you very much for this opportunity to ask the question. I have two questions for you. The first is regarding the recent DRAM price increases. I'm talking about semiconductors. Is this going to impact our cost of sales? It seems like there's a lot of talk about this overseas. So I'm wondering if there has been any long-term contracts in place regarding the DRAMs and how the volume is going to be planned for the future. Second is regarding the conversion cost. In the fourth quarter, it seems to go up. Is there a special reason for this?
먼저 첫 번째 질문을 간략하게 말씀드리면, 현재 자동차에 들어가는 반도체는 일반 DRAM하고는 연관성이 크지는 않고요. DRAM 가격 상승에 의한 원가 부담이 크다고 보기는 아직은 어렵고, 오히려 저희는 현재 많이 아시다시피 백금, 로듐, 팔라듐 이런 가격 부분이 원자재가 인상 부분에 큰 임팩트가 있습니다. 그다음에 반도체 수급 관련해서 예전에 반도체 쇼티지 때문에 어려움을 겪었던 게 있기 때문에 여러 업체와의 롱텀 계약은 당연히 하고 있고요. 그런 부분에 대한 접근은 리스크 관리 차원에서도 진행하고 있습니다. 두 번째 질문 주셨던 판매 보증비 비율 증가 부분에 대해서는 저희가 2025년에 신차 런칭이 어느 때보다 많았었고요. 신차 런칭 초기에 판매 보증비에 대한 충당이 높은 게 사실이고요. 또한 현재 저희가 EV 판매 비중이 늘어나면서 ICE보다는 EV 판매 보증에 대한 부담이 조금 더 있습니다. 그런 부분들이 전년 대비 증가하는 부분으로 보여졌으리라고 느껴지고요. 3분기 대비를 비교해 보시면 그 비율 자체가 떨어지는 걸 확인하실 수 있을 것 같고, 이게 큰 신차 사이클이나 이런 것들에 따라서 자연스럽게 움직일 것이지, 다른 요인이 있지는 않습니다.
Regarding the very first question, the semiconductors that go into automobiles are different from DRAM, so we are not impacted right now. It's difficult to say if we'll be impacted if our cost of sales will be impacted going forward. However, what's more important for us is basically the price of platinum and rhodium, as well as palladium that goes up. That is what impacts us even more. We have experienced a semiconductor shortage in the past, and that was a very difficult time for us. Of course, we do have long-term contracts in place to prepare ourselves. That is not a big risk that we think. Regarding the increase in warranty provision, there were a lot of new model launches in 2025, and therefore, when there's a new model launch in the beginning, we need a bigger provision.
also we saw increased sales in EVs, and EVs do need more warranty provision than ICE. that is why there was a YOY increase. when we look at the comparison with the third quarter, you can see that the ratio has actually gone down. I want to say that this difference in ratio is because of the new model launches as well as just organic differences in the cycle.
하나만 덧붙이면, 반도체 관련해서는 저희가 기본적인 계약 구조가 모델이 나올 때 가격과 물량에 대해서 각 개별 모델별로 그거에 대한 공급 계약을 하는 구조로 되어 있거든요. 그러다 보니까 한 번에 모든 반도체를 갖다가, 저희가 그 해에 조달하는 모든 반도체를 갖다 한꺼번에 repricing 하고 그렇게 되지는 않습니다. 그래서 전체적인 물량에 관한 부분들도 어느 정도 좀 시큐어가 되어 있고요. 그다음에 가격도 저희가 순차적으로 반영이 되게끔 그런 구조로 되어 있다고 보시면 됩니다.
Also, I would like to add on about the question regarding semiconductors. When we actually sign the contract regarding semiconductor procurement, we actually do individual contracts for different models. It is not like for semiconductors, we have a yearly procurement repricing contract altogether. Therefore, of course, these factors are forecasted, and that is included in our contracts.
다음 질문을 받겠습니다.
Next question, please.
다음으로 질문해 주실 분은 키움증권의 신윤철 님입니다.
The following question will be presented by Shin Yoon-chul from Kiwoom Securities. Please go ahead with your question.
네, 안녕하세요. 키움 신윤철입니다. 질문 기회 주셔서 감사합니다. 저는 순현금 19.6조 관련해서 질문드리겠습니다. 아까 26년에 현금 창출력 기반으로 현금 더 쌓아 나가겠다고 말씀을 주셨는데, 저는 사실 오히려 이게 20조 가까이 누적된 순현금 앞으로 더 효과적으로 쓰실지가 더 궁금하긴 하거든요. 이게 사실 현대차랑 비교를 해보더라도 이미 기아 순현금 레벨이 충분히 많아 보이는 데다가, 사실 이 관점에서는 CapEx 충당은 당연히 돼야 된다고 생각을 하고, 오히려 기아만의 단독 M&A랄지, 아니면 기아만의 TSR 상향 검토도 오히려 될 수 있을까라고 생각이 사실 듭니다. 특히 어제 General Motors 실적 발표한 거 보시면 Automotive FCF가 100억 달러인데 거기서 자사 주식 60억 달러를 제시하면서 주가가 많이 올랐거든요. 이걸 현대차그룹 TSR로 치환을 해서 보더라도 사실 50%를 상회하고, 아시는 것처럼 General Motors은 특히 전동화 전략 수정 관련 비용이 대대적으로 발생이 되고 있는데도 불구하고 이러한 주주 환원을 계속 얘기하다 보니까, 사실 KIA가 가지고 계신 현금 여력 대비 TSR 35% 유지는 좀 낮아 보이긴 합니다.
아까 공동 투자, 공동 자산은 현대차랑 같이 간다고 말씀주셨기 때문에, 최소한 TSR은 기준을 단독적으로 가져가셔도 되지 않을까 해서 KIA의 순현금 사용 계획에 대해 물어보고 싶습니다. 감사합니다.
Hello, I am Shin Yoon-chul from Kiwoom Securities. Thank you for the opportunity to ask a question. I have a question on the net cash. About KRW 19.6 trillion has been announced, but you have also announced that in 2026 with the cash generation capabilities that you have from Kia side, you'll be able to have more cash accumulated. I believe that there's already enough that is accumulated from Kia side, and I have more questions about how it will be used effectively. If we compare it with HMC as well, it looks like you have a lot of net cash on Kia side, therefore will there be any other plans for the usage of the net cash? For example, like the increase in TSR.
If we look at the earnings results, that call that was done by Kia recently, they announced that out of the KRW 10 billion, about $6 billion will be done as a share buyback, which is over 50% of the TSR. Therefore, if we look at the EV transition that GM is going towards, there will be a lot of costs that will be incurred from GM side. Even with that in mind, they are increasing their shareholder returns. Therefore, if we look at Kia, the TSR being 35%, I believe is a little bit lower compared to the net cash that Kia has. Although you have talked about the common investment that will be done on autonomous vehicles and robotics, I still think that TSR could be done on individual level, separate from the other groups in HMG.
Therefore, are there any other plans to use your net cash?
이미 질문에 답을 해서 주셨기 때문에 제가 추가로 조금만 언급을 드리자면, 질문 주셨던 내용들 때문에 저희가 캐시를 가지고 있는 거고요. KIA는 지금 20조에 가까운 현금을 들고 있지만 이렇게 늘어났던 부분이 잘 아시다시피 최근 한 5, 6년 사이에 올라온 부분이고요. 이 20조라는 게 저희 회사의 규모에 비해서는 과연 정말 저희가 어떻게 보면 과하게 현금을 가지고 있느냐. 다른 Peer 그룹과 비교해 보셔도 그렇지 않다고 하는 부분은 아마 아실 수 있을 것 같습니다. 그다음에 질문에 답이 있다고 드리는 말씀이 주주 환원 정책을 늘릴 수 있는 여지가 있지 않느냐, 그런 부분을 충분히 검토를 하고 있기 때문에 저희가 캐시가 필요한 거고요. 제가 생각지도 않았던 여러 가지 변수가 생길 수 있기 때문에 일정 부분 현금을 보유하고 있는 부분이고. 그렇기 때문에 저희는 앞서 제가 서두에서 말씀드렸다시피 회사의 실적이 좋아지고 보유하고 있는 캐시가 늘어난다면 당연히 주주 환원을 늘려야 된다고 생각을 합니다. 그래서 그렇게 요약 드리겠습니다.
I believe that the answer is in the question itself. To summarize the comments, I think that although the net cash that we hold on Kia is KRW 20 trillion, the reason why it has gone up is that it has been to this level in the recent five to six years. Compared to the scale of our company, the KRW 20 trillion net cash that we have isn't that excessive if we compare the net cash to our peer groups, as you're well aware. The reason why I said that the answer is in the question is because of the rule of the increase in the TSR. Of course, we are reviewing this, but within the situation that there may be another variables that may be in place or unexpected situations that may arise, we are holding the net cash in Kia currently.
As I said before, if the performance and our earnings go up, then our cash goes up accordingly as well. We cannot help but think about the increase in our TSR.
추가 질문이 없으므로 질의응답 순서를 마치겠습니다. 이상으로 KIA의 2025년 4분기 경영실적 발표 컨퍼런스 콜을 마치도록 하겠습니다. 기타 문의사항은 KIA IR팀으로 전화 주시기 바랍니다. 장시간 청취해 주셔서 감사합니다.
This concludes the fiscal year 2025 fourth quarter earnings results by Kia. If you have any further questions, please contact the Kia IR team directly. Thank you for your time and participation.