During the 2nd quarter of 2024, revenues of ‘City Cars’, a car dealer for the Kia brand, decreased by 36.3% to 47.5 million dinars compared to 74.6 million dinars during the same period in 2023. This is due to a delay in the new car delivery program for the 3rd quarter of 2024 compared to the program originally planned for the 2nd quarter of 2024.
For the first half of 2024 as a whole, revenues decreased by 4.7% to 137.5 million dinars, compared to 144.3 million dinars, for the same period in 2023. This trend is expected to reverse from the 3rd quarter, given the significant volume of new vehicle deliveries scheduled for this quarter.
During the first half of 2024, investment income amounted to 6.035 million dinars compared to 5.568 million dinars for the same period in 2023, an increase of 8.4%.
As at June 30, 2024, net cash and cash equivalents amounted to 35.038 million dinars compared to 54,758 million dinars a year earlier. At the end of the first half of 2024, the wage bill was 2.106 million dinars compared to 1.970 million dinars in the same period of 2023, an increase of 6.9%.
Tension on Korean assembly lines
City Cars Kia, the market leader in August with 998 registered vehicles, sold a total of 3,281 units in the first eight months of the year, down 19% on the same period last year. The main reason for this decline is the strain on the manufacturer’s production lines, linked to strong global demand for Kia’s flagship models.
Despite these production constraints, compounded by temporary logistical challenges, City Cars Kia has been able to adapt its offering by focusing on high value-added vehicles, particularly electrified cars.
This strategic reorientation has enabled the brand to consolidate its leading position in the fast-growing 100% electric car segment.
In the first eight months of 2024, Kia maintained its dominant position in the local electric vehicle market with 17 units registered, accounting for 21% of this emerging market’s share, which totaled 81 units in the period.
The coming months will provide greater visibility of Kia’s future performance as demand for its vehicles continues to grow.
City Cars Kia remains confident in its ability to meet consumer expectations while strengthening its position in the Tunisian automotive market. Several new models are planned to build on this success in the local market.
