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Posted on Oct 25, 06:40PM | IBNS
Hyundai Motor Company, South Korea's largest automaker, sold 3,183,516 units (domestic: 481,403 / overseas: 2,702,113) worldwide in the first nine months of the year, up 7.9 percent compared to the same period last year.
Net profit increased 17.4 percent to 7.16 trillion won since the end of September from a year earlier, while operating profit rose 14.8 percent to 9.07 trillion won.
Improved product mix and sales growth boosted sales revenue by 7.8 percent to 61.75 trillion won (auto: 52.55 trillion / finance and others: 9.20 trillion).
Strong overseas sales made up for sluggish demands in the Korean market, resulting in the overall YoY increase. Enhanced brand value and increased average selling price especially drove profit margin growth.
During the third quarter only, Hyundai sold 1,000,748 units, posting sales revenue of 19.65 trillion won (auto: 16.23 trillion, finance and others: 3.42 trillion) and operating profit of 2.10 trillion won with operating margin of 10.5 percent.
Compared to the second quarter, however, sales revenue dropped 10.5 percent, and operating margin decreased by 0.9 percent.
Continuously weak demands in the Korean domestic market and production shortfall caused by labor strikes contributed to halting the upward momentum of quarterly sales.
Hyundai sold a total of 3,183,516 units worldwide through September, up 7.9 percent from last year's 2,949,905 units.
While its domestic sales decreased by 5.6 percent to 481,403 due to lowered consumer confidence and production shortfall, Hyundai sold 2,702,113 units outside its domestic market (export: 902,304, overseas plants: 1,799,809), up 10.8 percent compared to the same period last year.
Hyundai forecasts that business uncertainties in the auto industry will continue through the fourth quarter to next year.
Even so, Hyundai said it will achieve its sales target through various efforts such as offering better quality, differentiated marketing and improved dealer networks.
The European auto market is expected to shrink by about 8 percent.
Despite the various measures taken to turn the slumping economy around, the downward trend continues to persist. In spite of economic indexes signaling improvement, the U.S. market is not expected to make a significant recovery as well.
Competition among major automakers stands to increase especially due to slowing demands from emerging markets such as China and India, once considered major drivers of the auto industry, said the company.
Hyundai Motor Company aims to turn these difficulties into opportunities by improving company fundamentals and strengthening its competency by pursuing qualitative growth based on quality management.
To do so, Hyundai will focus on launching strategic models for the local market and reinforcing dealer networks of its overseas sales subsidiaries in Europe.
In the U.S., it will carry out aggressive local marketing activities to win over more market share from its rivals.
Hyundai will also put forth its best efforts to stabilize operation at its third plant in China and its newest plant in Brazil, both of which started production this year, to secure a competitive position in the emerging markets.
To proactively respond to changing global demands, Hyundai also plans to develop and sell more fuel-efficient and eco-friendly models.
Hyundai Motor said it will continuously strive for qualitative growth, focusing on increasing profit margin rather than expansion.