Hyundai Motor Q2 profit slumps due to weak international demand

Hyundai's global retail sales fell 33% from the same period a year earlier whereas sales at home in South Korea - at 200,000 vehicles, exceeding all other markets - rose 13%.
By : Reuters
| Updated on: 23 Jul 2020, 12:26 PM
Hyundai's domestic sales have been led by large cars and sport-utility vehicles (SUVs). (REUTERS)
Hyundai's domestic sales have been led by large cars and sport-utility vehicles (SUVs). (REUTERS)
Hyundai's domestic sales have been led by large cars and sport-utility vehicles (SUVs). (REUTERS)
Hyundai's domestic sales have been led by large cars and sport-utility vehicles (SUVs).

South Korea's Hyundai Motor Co said on Thursday second-quarter profit fell 75% on year, the steepest in seven quarters and missing analyst estimates, as weak global demand due to the pandemic overshadowed sales of high-end models at home.

Hyundai's global retail sales fell 33% from the same period a year earlier whereas sales at home in South Korea - at 200,000 vehicles, exceeding all other markets - rose 13%, company data showed.

Other markets including the United States, China, Europe and India suffered double-digit percentage sales falls.

(Also read: Hyundai sells 100,000 units of Kona EV worldwide)

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Domestic sales have been led by large cars and sport-utility vehicles (SUVs) such as the G80 sedan and GV80 SUV from premium brand Genesis as well as Hyundai sedan Grandeur, analysts said.

Even so, sales of such higher-margin cars were not enough to offset a plunge in demand in Europe and especially in the United States, which is reeling from daily surges in Covid-19 cases.

Hyundai shares were up 3.3% versus a 0.6% fall in the broader market.

(Also read: Hyundai launches striking Venue Sport trim with intelligent manual transmission)

Net profit for April-June fell to 227 billion won ($189.53 million) from 919 billion won a year earlier. That compared with the 275 billion won average of 16 analyst estimates compiled by Refinitiv. Revenue fell 19% to 21.9 trillion won.

First Published Date: 23 Jul 2020, 12:26 PM IST
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