Hyundai Motor reports record profit and revenue for Q2

Industry

Published: 25 Jul. 2024, 16:42 Updated: 25 Jul. 2024, 18:52

Hyundai Motor reports record profit and revenue for Q2

Hyundai Motor and Kia headquarters in southern Seoul. [YONHAP]

Hyundai Motor set another record for profit and revenue in the second quarter thanks to solid sales of hybrid cars and high-margin SUV models.

The Korean automaker posted 4.28 trillion won ($3.1 billion) of operating profit during the April-to-June period, up 0.7 percent on year, a new high for any quarterly figure.

It also slightly surpassed the market consensus of 4.2 trillion won compiled by market tracker FnGuide.

Revenue also hit an all-time high of 45 trillion won, up 6.6 percent on year, also beating the analyst estimate of 44 trillion won.

Net profit rose 24.7 percent to 4.17 trillion won.

“Increased sales of hybrid cars defended the slowed sales of EVs while high-margin SUV models improved profitability,” said Lee Seung-jo, senior vice president of the finance division at Hyundai Motor, during a conference call Thursday.

The automaker sold 1.06 million cars globally during the three months, down 0.2 percent, impacted heavily by dropping sales in China.

At home, sales were down 9.6 percent to 185,737 units as demand for EVs slowed in the domestic market.

But overseas sales rose 2 percent on year to 871,431 thanks to high-margin vehicles like the Santa Fe Hybrid and facelifted Genesis GV80.

Sales of environmentally friendly cars inched up 0.2 percent to 192,242. Hybrid car sales jumped 26.4 percent to 122,421 while battery-powered EVs sales dipped 25 percent.

Hyundai Motor plans to expand its hybrid lineups in the midst of growing uncertainties in the global market including the upcoming U.S. presidential election.

“Hybrid cars are more profitable than EVs,” Lee said. “In response to the possible reduction in [incentives] under the Inflation Reduction Act, Hyundai will heavily ramp up hybrid sales based on our flexible production system.”

Hyundai is planning to produce hybrids in its under-construction $5.5 billion EV plant in Georgia, which is slated to start operating in October.

Lee also hinted that Hyundai Motor eyes its “Indian subsidiary to go public within the year.”

The Indian unit in June filed for a $3 billion blockbuster initial public offering, which will likely be the biggest offering of its kind in the nation's history.

The company will pay a year-end dividend of 2,000 won per share, up 33.3 percent.

Hyundai Motor shares closed at 251,500 won, down 2.7 percent from the previous trading session.

Kia will release its second-quarter earnings report Friday.

BY SARAH CHEA [chea.sarah@joongang.co.kr]