Hyundai Motor reports highest quarterly earnings on improved sales mix

Robust sales for hybrid cars offset falling demand for electric vehicles

By Lee Min-hyung, The Korea Times - Hyundai Motor set a new quarterly earnings record between April and June on its improved vehicle sales mix, focusing on profitable hybrid cars even amid falling demand for electric vehicles (EV), the carmaker said in a regulatory filing Thursday.

It attained an operating profit of 4.27 trillion won ($3.08 billion) in the second quarter, up 0.7 percent from the previous year. Its sales also widened by 6.6 percent to 45.02 trillion won during the same period.

This was driven by its optimized sales and production for diverse vehicle lineups. The company said it will focus on expanding sales of SUVs and value-added vehicles to address the ongoing slowdown in the global EV industry.

“We will continue raising our profitability and global market share by improving the product mix with the focus on SUVs and value-added vehicles,” an official from Hyundai Motor said.

The carmaker also expected demand for hybrid cars to grow further from a short-term viewpoint, as the EV market here and abroad entered a stagnation phase, known as the “chasm,” before its mass adoption at some point in the not-too-distant future.

However, most major countries are moving to increase investment toward the environment, as demand for EVs will drive the eco-friendly vehicle market from a mid- to longer-term viewpoint, according to the company.

Toward that end, the company shared plans to diversify the lineup of its flagship IONIQ EV brand and successfully launch its Casper Electric compact vehicle on the global market. It also reiterated its firm willingness to enhance its technological prowess for hybrid vehicles.

The carmaker also said the prolonged high interest rates and its subsequent demand slowdown will keep posing a downward risk for its additional growth. Macroeconomic uncertainties in emerging economies will also make it harder for the carmaker to forecast its management environment down the road.

Hyundai Motor also decided to fix its dividend per share at 2,000 won in the second quarter, up 33.3 percent from a year earlier.

“We will keep reviewing an active set of shareholder return policies and enhancing shareholder value,” the official said.

The carmaker also set a new record in sales for the first six months combined, with the figure reaching 85.67 trillion won, up 7 percent from a year earlier. But its operating profit slightly declined during the same period, after the figure reached 7.83 trillion won in the first half of this year, down 0.68 percent from the previous year.

Source: https://koreatimes.co.kr/www/tech/2024/07/419_379363.html?utm_source=nans 

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