- Hyundai Motor sells 2.49 million units worldwide in the first half of 2014
- Sales revenue and net profit stand at 44.40 trillion won and 4.38 trillion won
- Profits decline on stronger won
Hyundai Motor Company, South Korea’s largest automaker, today announced its business results for the first half of 2014. In spite of strong sales of its new models and cost savings, a strong Korean won led to a 5.8 percent decrease in operating profit, compared to the same period last year.
For the first six months of 2014, sales revenue declined 0.3 percent to 44.40 trillion won (auto: 36.19 trillion / finance and others: 8.21 trillion) from a year earlier. Operating profit and net profit also fell 5.8 percent and 5.1 percent to 4.03 trillion won and 4.38 trillion won (including non-controlling interest), respectively, due to the strong won against the U.S. dollar, despite increased sales growth and improved product mix.
Hyundai Motor sold 2,495,837 units globally (Korea: 345,709 / overseas: 2,150,128) during the first half of this year, a 4.4 percent increase from a year earlier. In Korea, Hyundai Motor’s sales went up 6.2 percent, mainly due to robust sales of the recently-launched all-new Genesis and Sonata, while its overseas sales also rose 4.1 percent from the same period a year ago.
In the second quarter alone, sales revenue decreased 1.9 percent to 22.75 trillion won (auto: 18.47 trillion / finance and others: 4.28 trillion) with global sales of 1,268,385 units. Likewise, both operating profit and net profit declined 13.3 percent and 6.9 percent to 2.09 trillion won and 2.35 trillion won, respectively, from a year earlier.
Hyundai Motor forecasts that an unfavorable business environment will continue in the second half, with uncertainties surrounding the global auto industry.
In order to overcome such difficulties, Hyundai Motor will enhance customer confidence by further strengthening its quality management as well as enhancing its brand power to reinforce fundamentals for future growth. In particular, Hyundai Motor will manage the quality of its products from the development stages and strengthen internal training programs to secure top-tier competitiveness.
Hyundai Motor’s efforts on quality management have been proven by a variety of third-party agencies. To name a few, the company’s all-new Genesis and Sonata were rated as one of the safest cars on the road by the Insurance Institute for Highway Safety’s (IIHS) crash tests in the U.S, while Hyundai Motor was also the highest-ranked non-premium brand in the J.D. Power 2014 Initial Quality StudySM (IQS), marking the first time a nameplate has ranked highest among non-premium brands in both APEAL and IQS in the same year.
For the remaining of the year, Hyundai Motor will stay focused on increasing sales and securing profitability by cutting costs and responding efficiently to regional demands with its latest products.
