Hyundai Motor sees huge profits in Q2 on solid demand for SUVs, premium Genesis cars
Updated: 2021-07-23 13:41:12 KST
South Korea's Hyundai Motor has posted solid earnings for the second quarter of this year.
The top automaker on Thursday reported a net profit of 1.7 billion U.S. dollars for the April-to-June period, seeing a whopping 400 percent on-year jump.
The company's operating profit was 1.6 billion dollars, the highest growth in seven years while sales totaled 26 billion dollars, up almost 39 percent on-year.
The high gains were largely due to last year's low base effect due to the COVID-19 pandemic as well as a strong demand for its high-margin SUV models and its premium Genesis cars.
"Compared to last year, Genesis sales were up more than three times in the U.S. This is probably because of its new, redesigned vehicles that have high-quality features. And since consumers are not able to spend a lot on traveling amid the pandemic, many people are pouring their money into luxury goods… like cars. "
The strong earnings were also backed by its supply chain management, which has helped the leading automaker amid a global chip shortage.
On Thursday, the company stressed that it's pursuing partnerships with major semiconductor companies to maintain stable supplies of auto chips.
However, Hyundai expects on-year sales growth to slow in the second half of this year due to adverse business conditions, including rising raw material prices.
Meanwhile, Hyundai's affiliate Kia also reported strong quarterly results.
It saw an operating profit of 1.3 billion dollars, while sales climbed more than 61 percent to over 15-point 6 billion dollars.
Hyundai and Kia, together the world's fifth-largest carmaker by sales, aim to sell about seven million vehicles this year.
Min Suk-hyen, Arirang News.