Hyundai Motor broke ground for its fifth Chinese manufacturing plant - in the Liangjiang New Area of Chongqing - at the beginning of the third quarter

Hyundai Motor broke ground for its fifth Chinese manufacturing plant - in the Liangjiang New Area of Chongqing - at the beginning of the third quarter

Hyundai Motor has reported that net income for the three months to the end of September declined 25% on last year to 1.2 trillion win (around US1.1bn) as it was hit by a fall in sales in China.

The results fell short of analyst expectations and the company's share price declined on the news.

Hyundai blamed tough competitive conditions in its major markets as well as currency headwinds.

Hyundai said its vehicle sales in China slumped by nearly a fifth in the third quarter versus last year. Earnings from Russia were hit by the sharp decline of the market there as well as the collapse of the rouble.

Lee Won-hee, Hyundai's chief financial officer, said its sales in China will turn higher this month compared with a year earlier, helped by a cut in tax on auto purchases there.

The company broke ground at the beginning of the third quarter for its fifth assembly plant in China.

Auto market intelligence
from just-auto

• Auto component fitment forecasts
• OEM & tier 1 profiles & factory finder
• Analysis of 30+ auto technologies & more