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Hyundai Motor announced a 30.2% increase in operating income in the second quarter, driven by improved sales in the US and the US, challenging the slowdown in the global automotive market and trade disputes in the United States. course between the United States and China.
Hyundai's net profit was set at 999.3 billion won ($ 848.6 million) in the second quarter, up 23% from a year earlier, while sales were increased by 9% at Won26. Operating profit was 1.2 billion won, ahead of badysts' estimates from Reuters.
Hyundai, which together with its subsidiary Kia Motors, is the world's fifth-largest automaker, has become one of the few major South Korean exporters to post a rise in profits from April to June. Its performance in the second quarter was driven by new models to meet the increased demand for commercial vehicles, although its profits in China remained sluggish.
Domestic sales advanced 8.4%, driven by the growing popularity of its new Sonata sedan and large Palisade sport utility vehicle. Its profits should still improve in the second half, the South Korean manufacturer catching up on the switch to commercial vehicles. Hyundai has started selling Palisade in the US this month and plans to introduce the new Sonata into the world's second largest market later this year.
Second quarter momentum is expected to continue as Hyundai launched a new compact SUV model earlier this month and plans to launch its first SUV model under the Genesis premium brand in the second half of the year.
However, slowing demand in China remains a major concern for Hyundai, which is struggling with overcapacity in the world's largest market, facing an economic slowdown between high-end Western brands and lower-cost Chinese competitors .
Chinese car sales contracted last year for the first time in decades and Hyundai, which has five factories in China, was forced to suspend production at its oldest plant in Beijing
Hyundai shares have gained about 13% since the beginning of the year, thanks to the recovery of profits.
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