Exchange-Rate Gains, Strong Hybrid Sales... Hyundai Motor's Q3 Operating Profit Hits 2.6 Trillion Won (Updated)

Operating profit up 5.5% year on year despite strike and fewer business days
HEVs account for 18.2% of sales, up 2.7 percentage points year on year

Despite production disruptions caused by strikes, Hyundai Motor posted operating profit of 2.6772 trillion won in the third quarter, up 5.5% year over year, buoyed by favorable exchange-rate effects and the implementation of contingency plans.

Hyundai Motor said on the 29th that it recorded wholesale sales of 920,710 vehicles and revenue of 45.1102 trillion won in the third quarter. Revenue fell 3.4% year over year, affected by lower sales volumes due to production disruptions.

Its operating margin was 5.9%, supported by favorable exchange-rate effects, the implementation of contingency plans such as cost optimization, and an improved sales mix resulting from increased hybrid electric vehicle (HEV) sales. Net income was 1.9317 trillion won, including non-controlling interests.

A Hyundai Motor representative said, "Sales volume declined in the third quarter due to fewer working days and production disruptions at domestic plants, but we defended profitability through exchange-rate effects, cost optimization efforts, and increased HEV sales. In the fourth quarter, we will recover sales volume by normalizing production and ramping up sales of key new models, while continuing companywide cost-cutting efforts to improve profitability."

Hyundai Motor sold 920,710 vehicles in global markets in the third quarter, down 11.3% year over year due to fewer working days during the Chuseok holiday and production disruptions.

In South Korea, the company sold 131,468 vehicles, down 27.2% year over year. Hyundai Motor plans to actively expand domestic sales with highly competitive new models, including the "The All-New Avante" and "The All-New Tucson."

Overseas sales totaled 789,242 vehicles, down 8.0%, amid a deterioration in the overall business environment, including sluggish global industry demand and export disruptions caused by strikes.

Global sales of electrified vehicles, including commercial vehicles, totaled 245,540 units, down 2.7% year over year, as sales volumes of electric vehicles (EVs) and other models declined. EV sales totaled 69,117 units, while HEV sales reached 167,414 units, excluding plug-in hybrid electric vehicles (PHEVs).

HEV sales increased by about 6,000 units from approximately 161,000 a year earlier. Electrified vehicles and HEVs accounted for 26.7% and 18.2%, respectively, of total global sales, up 2.4 percentage points and 2.7 percentage points year over year.

Meanwhile, Hyundai Motor's cost of sales as a percentage of revenue rose 1.5 percentage points year over year to 83.8%, due to higher raw material prices. Selling, general and administrative expenses as a percentage of revenue fell 2.0 percentage points year over year to 10.3%, reflecting overall cost-cutting efforts.

This content was produced with the assistance of AI translation services.