SEOUL, KOREA, Oct 24, 2008 (AFP) - Kia Motors, South Korea's second largest automaker, said Friday its net loss narrowed sharply in the third quarter as it sold more fuel-efficient models.

Kia, an affiliate of the country's largest automaker Hyundai Motor, said the net loss for July-September fell to 22 billion won (S$24.2 million) from a 55 billion won(S$60.5 million) loss in the third quarter of 2007.

The third-quarter operating profit was 53.6 billion won(S$58.96 million), a reverse from a 116.4 billion won(S$128.04 million) loss a year earlier, marking the fourth consecutive quarter that the company has registered an operating profit.

"Impacts of a favourable currency rate, cost-cutting efforts and strong sales of new models improved third-quarter results," Kia said in a statement.

Sales rose 4.9 percent year-on-year to 3.42 trillion won(S$3.762 billion) despite the ongoing economic slowdown, as Kia's domestic market share rose 3.9 percent to 25.9 percent.

For the first nine months to September, Kia Motors sold just over one million cars, up 4.5 percent from a year earlier.

This was made up of 229,000 in South Korea, 510,000 exported abroad and 262,000 produced and sold from overseas plants.