Hyundai Motor Company reports BL11.6 percent decline in global wholesale volume
Seoul/IBNS: Hyundai Motor Company on Thursday announced its business results for the first quarter of 2020, reporting an 11.6 percent decline in global wholesale volume due mainly to temporary production disruption at its Korean facilities and weak global demand caused by COVID-19.
The company sold 903,371 vehicles around the globe in the January-March period compared with 1,021,391 units a year earlier. Total sales in markets other than Korea dropped by 11.1 percent to 744,310 units and sales in Korea slid 13.5 percent to 159,061 units.
Sales revenue, however, recorded positive growth led by an enhanced product mix and a favorable currency environment. First-quarter revenue rose to KRW 25.32 trillion compared with KRW 23.99 trillion a year earlier, backed by a stronger product mix with higher sales of SUVs and Genesis luxury models. A weaker Korean won against the U.S. dollar offset the decline in global sales volume.
Operating profit increased to KRW 863.8 billion from KRW 824.9 billion helped by one-time gain of around KRW 100 billion from a transaction related to autonomous driving joint venture formed last quarter between Hyundai Motor Group and Aptiv. Operating income excluding the one-off item declined from a year earlier.
Net profit stood at KRW 552.7 billion, down 42.1 percent from KRW 953.8 billion previous year due to worsening profits at affiliated companies as well as foreign currency-related expenses.
The company expects to face weakening profitability in the second quarter as the impact of COVID-19 continues to hurt auto demand around the world amid a sluggish global economy. Increased volatility in international oil prices also might slow demand, further blurring business outlook.
While reviewing various scenarios about future demand and the sales environment, Hyundai Motor plans to enhance its product competitiveness with strong new models in the Korea market, where auto demand remains relatively steady. The company also will work to optimize inventory and incentive levels and to expand supplies of new models including SUVs for overseas markets.
The company is implementing various schemes to take care of its customers, such as extending warranty periods, launching new models online and introducing more un-contacted channels for vehicle sales.
Despite the uncertain business environment, Hyundai Motor is constantly accelerating its transition into a Smart Mobility Solutions Provider and securing its position as a game changer in the future mobility industry. The company is stepping up research and development efforts to produce more competitive eco-friendly vehicles in the era of electrification and cutting-edge technologies.
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