Hyundai Motor Company, South Korea’s largest automaker has announced first-quarter business results for 2015. Sales volume, revenue and operating profit declined from the same quarter last year, due to unfavourable external factors such as strong won against euro and currencies of developing countries.
Sales revenue declined to KRW 20.94 trillion (Auto: 16.53 trillion / Finance and others: 4.41 trillion) from the same quarter last year, and operating profit and net profit also fell to KRW 1.59 trillion and KRW 1.98 trillion(including non-controlling interest), despite continued efforts of improving model mix and cost savings.
For the first three months of the year, the company sold a total of 1,182,834 units worldwide, a 3.6 percent drop compared to the same period last year, and its sales revenue also decreased 3.3 percent. Sales in Korea fell 3.7 percent to 154,802 units, while oversea sales also decreased 3.6 percent to 1,028,032 units from the same quarter last year.
Results for 2nd quarter is likely to look brighter. The newly introduced All-new Tucson is gaining positive market response, along with strategic models like i20 and ix25, which are continuing its new model launch effect. Additional introduction of new volume selling models will refresh Hyundai Motor’s sales momentum. Furthermore, weak KRW to USD will be favorable to Hyundai Motor in regaining its profitability.
Hyundai Motor forecasts that the economic uncertainty surrounding the auto industry is likely to continue, backed by slower pace of global economic growth and increased competition amongst automakers.
In order to overcome such difficulties, Hyundai Motor will enhance its quality management as well as enhancing its brand power to reinforce fundamentals for future growth. In particular, Hyundai Motor will strengthen its competitiveness by introducing strategic local models and focusing more on fuel economy and developing innovative technologies such as eco-friendly vehicles and smart cars.