Hyundai sells 1.88 mn vehicles in first 6 months, Q2 profit jumps 56%

Seoul: Hyundai Motor said on Thursday that its second-quarter net profit jumped 56 per cent from a year earlier on improved product mix and a weak won.

Net profit for the three months ended in June rose to 3.08 trillion won (US$2.34 billion) from 1.98 trillion won during the same period of last year, the company said in a statement.

In the six-month period, Hyundai sold a total of 1.88 million vehicles, achieving 43 per cent of its sales target of 4.34 million units for the year.

The second-quarter bottom line was buoyed by increased sales of Hyundai’s independent brand Genesis models, decreased incentives and the won’s weakness against the dollar, reports Yonhap news agency.

The dollar rose to an average of 1,259.57 won in the second quarter from 1,121.23 won a year ago, according to the Bank of Korea.

Such factors helped offset the carmaker’s production losses derived from a prolonged chip shortage and disruptions of parts supplies, Hyundai said.

Looking ahead, Hyundai said higher raw materials prices resulting from the Russia-Ukraine war, a resurgence of the Covid-19 pandemic and inflation amid rising interest rates will remain uncertainties for the automobile industry.

Operating profit soared 58 per cent to 2.98 trillion won in the June quarter from 1.89 trillion won a year ago. Sales were up 19 per cent to 35.99 trillion won from 30.33 trillion won.

From January to June, net profit climbed 39 per cent to 4.86 trillion won from 3.50 trillion won in the year-ago period.

Operating profit also jumped 39 percent to 4.91 trillion won in the first six months from 3.54 trillion won. Sales gained 15 percent to 66.29 trillion won from 57.72 trillion won.