On October 24, South Korean automaker Hyundai Motor announced that its operating profit for the third quarter (July to September) fell 6.
5% year-on-year due to slowing demand for automobiles and increasingly fierce competition, but the company still maintains its 2024 profit target unchanged.
After the earnings report was released, the company’s share price fell more than 5%.
, Hyundai Motor and its subsidiary Kia Motors are the world’s third-largest automaker by sales.
Hyundai Motor reported that in the third quarter of this year, its operating profit was approximately 3.
6 trillion won (approximately 2.
6 billion US dollars), down from 3.
8 trillion won in the same period last year and lower than the average forecast of 20 analysts compiled by SmartEstimate on the London Stock Exchange. 3.9 trillion won.
its net profit fell slightly year-on-year to 3.
2 trillion won.
but its revenue increased slightly by 4.
7% year-on-year to approximately 42.
9 trillion won.
Hyundai’s profits have been affected by the warranty cost of Hyundai’s Santa Fe SUV engines in the United States of up to 320 billion won, coupled with slowing global car demand and the company’s increased sales incentives.
“The operating environment in the automotive industry is deteriorating,” Hyundai Motor Chief Financial Officer Lee Seung-jo said on a conference call.
He also mentioned global policy uncertainty and increased geopolitical risks.
, However, Hyundai Motor still maintains its 2024 profit target, which is expected to achieve an operating profit margin of “8% to 9%” this year.
In the first nine months of this year, Hyundai Motor’s operating profit margin was 8.9%. In the third quarter of this year, Hyundai Motor sold 1,011,808 vehicles worldwide, a year-on-year decrease of 3.2%. in the South Korean market, thanks to SUVs and hybrid models (For example, Santa Fe Hybrid) sales increased by 1.
8% year-on-year to 169,901 units.
in North America, thanks to the popularity of the new Santa Fe and Tucson SUVs in the market, the company’s car sales also increased by 9.
3% year-on-year to 300,319 units.
, 2025 Santa Fe.
Photo source: Hyundai Motor, Hyundai Motor also said that although sales of its pure electric vehicles have declined, sales of its hybrid vehicles with double-digit profit margins have surged by more than 40% year-on-year.
, In August this year, Hyundai Motor said it planned to double its hybrid product line to cope with slowing global demand for electric vehicles, while cutting its electric vehicle sales targets and postponing the development and launch of some electric vehicles.
In addition, large European automakers such as Volkswagen Group, Mercedes-Benz Group and BMW Group have also issued warnings that billions of euros have evaporated in the automotive industry’s market value due to deteriorating demand prospects and rising car costs.
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