Kia Corp. has overtaken parent Hyundai Motor, which saved it from bankruptcy more than 25 years ago, in market value as it ramps up production of budget electric cars. Bloomberg reports this.
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Shares of the automaker rose by 5% in Seoul at closing, raising Kia's market capitalization to 41.3 trillion won ($31 billion) and making it larger than that of Hyundai, which reached 41.1 trillion won after rising 2.4%.
Kia is now the fifth most valuable stock in South Korea.
The agency notes that this is the first time that Kia has surpassed Hyundai on the Korean stock market since 2001. Hyundai acquired Kia out of bankruptcy in 1998, and now owns a 34% stake in the lesser-known car brand.
Hyundai Motor Group was founded in 2000 after Hyundai Motor Co. I bought a Kia. Hyundai Motor Group is now the parent company of Hyundai Motor Co., Kia and Genesis.
Kia shares have jumped 17% since Jan. 25, when the automaker announced a 500 billion won share buyback plan and said it plans to operating margin of almost 12% per year.
Kia's electric vehicle sales will grow by 50% to 270 thousand units in 2024, making the company stand out among global competitors amid weak demand.