- Hyundai Motor sold 3.54 million units worldwide through 2015 third quarter
- Sales revenue and net profit recorded at KRW 67.19 trillion and KRW 4.98 trillion, respectively
- Profits declined mainly due to developing markets’ strong currencies against KRW and increased expenditure on promotion and marketing efforts
Hyundai Motor Company, South Korea’s largest automaker, today announced its 2015 third-quarter business results. Sales revenue increased while sales volume and operating profit declined from the same period last year, mainly due to strong KRW against currencies of developing countries including Russia, Brazil and Turkey. Also, increased incentives and promotions in the US and other regions as well as increased marketing efforts for new car launches contributed to the decline.
For the first nine months of 2015, sales revenue increased 2.3 percent to KRW 67.19 trillion (Auto: 52.64 trillion / finance and others: 14.54 trillion) from a year earlier. Revenue increase of finance and others was the main reason for sales revenue increase.
However, operating profit and net profit fell 14.7 percent and 16.9 percent to KRW 4.84 trillion and KRW 4.98 trillion (including non-controlling interest), respectively.
Hyundai Motor’s cumulative global sales for the first nine months totaled 3,537,573 units (Korea: 497,867 / overseas: 3,039,706), a year-on-year decrease of 2.4 percent. Stagnant demand for passenger vehicles and impact from currency fluctuations are the main reasons for the global sales drop.
In the third quarter alone, sales revenue increased 10.1 percent to 23.43 trillion won (auto: 18.29 trillion / finance and others: 5.14 trillion) with global sales of 1,121,796 units. However, both operating profit and net profit declined 8.8 percent and 25.3 percent to KRW 1.50 trillion and KRW 1.21 trillion, respectively.
Hyundai Motor forecasts that an unfavorable business environment is likely to continue in 2015. Although economy in developed countries is on recovery, emerging markets including China will continue posting slower growths, leading to steeper competition amongst automakers.
Nevertheless, Hyundai Motor will continue its effort to boost sales and improve competitiveness in different regions by introducing new models and strategic models for local markets.
Hyundai Motor’s sub-compact SUV Creta and the newly introduced All-new Tucson are continuing their new model launch effects. In addition, the introduction of All-new Elantra will also likely refresh Hyundai Motor’s sales momentum.
Overall, Hyundai Motor forecasts that its fourth-quarter performance will improve compared to the recent quarter based on several positive factors such as weak trend of KRW against USD and new model launches.