High Global Demand, Hyundai Records 151 Percent Profit Increase In The Third Quarter

Hyundai Kona Electric. (Doc. Hyundai Motor Group)

Hyundai Motor recently announced a 151 percent increase in profit in the third quarter, which was largely due to a surge in SUV sales and profit from a lucrative exchange rate.

According to a Reuters report on Thursday, October 26, the South Korean automotive company recorded a net profit of 3.2 trillion won or around IDR 37.6 trillion from July to September 2023.

With this achievement, Hyundai has experienced an increase in profit of 1.3 trillion won compared to the previous year, exceeding the estimated 2.9 trillion won which is expected by 19 analysts compiled by LSEG SmartEstimate, which is based on a more consistent estimation of analysts. Revenue also rose by 8.7 percent year-on-year to 41 trillion won.

This significant profit growth is the result of increased vehicle sales, mainly outside Korea, including in the markets of North America, Europe, and India. The increase was also driven by high demand and increased vehicle prices due to disruptions in global chip supply during the pandemic.

However, rising interest rates and global economic uncertainty have caused vehicle financing costs to rise, thus affecting consumer demand.

Hyundai Motor also recorded an increase in sales by 2 percent to 1,045,510 units worldwide compared to the previous year. Meanwhile, sales in the international market rose by 1.9 percent to 878,541 units, with an increase in sales in Korea by 2.8 percent to 166,969 units.

The sales include various brands such as Hyundai and Genesis, which also managed to increase sales of nearly 169,000 electric vehicles (EV), up 33 percent compared to the previous year.

To strengthen its position in the global electric vehicle market, Hyundai Motor plans to increase sales of EV units such as Ioniq 5, Ioniq 6, and Kona Electric, as well as Genesis brands such as the Electrified G80 and Electrified GV70 in various international markets.