Hyundai Motor Q1 profit falls as sales incentives rise, currencies drag
Weaker overseas currencies drag on offshore revenue for South Korea's biggest carmaker
Hyundai Motor yesterday posted its fourth consecutive drop in quarterly profit after South Korea's biggest carmaker boosted sales incentives in the United States and weaker overseas currencies put a drag on offshore revenue.
Hyundai Motor, which with affiliate Kia Motors ranks fifth in global sales, said net profit eased 1 per cent to 1.91 trillion won (HK$13.7 billion) in January-March from 1.93 trillion won a year earlier.
Though the result was ahead of the 1.7 trillion won average estimate in an analyst survey, another drop in profit will add to pressure on Hyundai to boost production of sport utility vehicles (SUVs) and trucks to capitalise on surging demand in the US and China.
"We expect earnings to improve going forwards," Hyundai said in a statement, citing the planned rollouts of its Tucson SUV overseas.
The company also said it planned to start making the petrol-electric hybrid version of its Sonata sedan in China late this year, seeking to drive sales of environmentally friendly cars in the world's biggest car market.
This would be its first hybrid car to be produced overseas, a Hyundai Motor spokeswoman said yesterday. Sonata hybrids being sold in the US and other markets are currently made in South Korea.
