SOUTH KOREA: Hyundai profitability matches BMW
Hyundai Motor’s ratio of operating profit to revenue in the vehicle sector came to 10.91% during the third quarter, which is nearly equivalent to the 10.94% of BMW, the Korea Herald reported.
Few carmakers are enjoying a double-digit figure, and Volkswagen and GM recorded below 7%.
Market insiders told the paper it was noteworthy Hyundai Motor, whose main products are aimed at middle-income drivers at home and abroad, reaped similar profitability as BMW, which mostly targets the high-income bracket.
Hyundai executives attributed the high profitability to its business policy of refraining from excessive discounts on vehicles and reducing costs by integrating assembly line platforms.
However, Hyundai and BMW also saw the ratio of operating profit to revenue inch down 0.9% and 1.2%, respectively, in the third quarter from a quarter before due to the protracted global economic slowdown.
The Korean company pledged to enhance management ? focused more on profitability than business expansion ? as its earnings for the July-September period slightly dropped compared to the previous quarter.
Though the carmaker’s third-quarter operating profit came to KRW2.05 trillion (US$1.83bn), up 3.1% from a year earlier, the figure is lower by 17.8% than the previous quarter, Hyundai Motor said.
In the same vein, Hyundai’s sales and net profit increased by 3.6% and 12.9% to KRW19.6 trillion and KRW2.1 trillion, respectively, on a year-on-year basis. But the two sectors fell by 10.5% and 15% compared to a quarter before.
“The quarter-to-quarter drop in earnings is attributable to weaker production capacity from labour disputes as well as the prolonged slump in domestic sales,” a company spokesman said.
“Uncertainty over the business environment still continues,” he said. “To achieve the yearly target, we would push for production of quality-oriented vehicles and creative marketing strategies.”
In the meantime, Hyundai will introduce a series of vehicles geared for Chinese consumers at an international motor show in China this week, vying to grab a larger share of the world’s largest automobile market, officials said Monday, according to Yonhap News.
The 10th annual Guangzhou International Motor Show kicks off on 23 November for a 10-day run in the southern Chinese city. The motor show is one of three major auto shows in China, along with the two others held annually in Beijing and Shanghai.
Hyundai Motor will showcase the eighth generation of its flagship Sonata sedan and the latest models of the Langdong and Yuedong, both of which are Chinese versions of its steady-seller Elantra.
The carmaker will also display the latest version of its subcompact Accent sedan, called the Verna in the Chinese market, and its ix35 sports utility vehicle.
Hyundai Motor’s Yuedong and Langdong are steady sellers in China, making the list of the top 10 best-selling sedans in China last month. Its ix35 is also popular in China, ranking third among the top 15 best-SUVs in October.
“Hyundai Motor attaches great importance to the Chinese market,” said a Hyundai Motor official in China. “We will continue on our mission to bring innovation and meet more personalised demands of Chinese consumers for cars.”
We live in strange times. As Fisker, a rival with supposedly superior range-extending technology falls apart, the value of Tesla rises yet again, this time by almost two percent on Wednesday to US$9.7...
Although the Chinese car market is expected to see growth of around 10% this year, prospects for premium brands have deteriorated as a result of the Chinese government's anti-corruption campaign, acco...
An i30 was the one millionth car produced at Hyundai's factory in Nošovice, Czech Republic this week. Production started at the 'greenfield' plant on 3 November 2008, when a previous generation i30 mo...
Magna International said its Cosma International operating unit was one of eight suppliers which received a BMW Supplier Innovation Award. It was recognised for a lightweight, high-voltage battery hou...
New vehicle sales in the Philippines increased by 21% to 14,888 units in April, from 12,304 in the same month of last year, according to data released jointly by the Chamber of Automotive Manufacturer...
BMW Group is paving the way for continued success in the future with a high level of expenditure on new technologies and models and investments in its production network, shareholders were told at the...
- VEHICLE ANALYSIS: MY2015 Range Rover Hybrid
- Briefing: 48V mild hybrids (3)
- THE WEEK THAT WAS: Hobnobbing with the A-listers
- Volvo UK specs up seven seat XC90 redesign
- ANALYSIS: Hoegh Osaka saga: Knowns and unknowns
- Geneva show debuts list updated
- OnStar to be 'revolutionary' in Europe - Opel head
- GENEVA: Toyota joins engine downsize bandwagon
- No Mexico-Brazil agreement on new auto pact
- GENEVA: Ford adjusting to Russia challenges