Hyundai Motor has posted a higher than expected 38% rise in third-quarter net profit as it gained global market share helped by strong sales of new models.
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The 1.35 trillion won ($1.20bn) net profit for the quarter ended Septembercompared with a consensus forecast of 1.07bn won from Thomson Reuters I/B/E/S. Net profit was down 2.6% from the previous quarter.
Operating profit rose 28% to 751.8bn won from a year earlier, while sales climbed 9% to 8.85 trillion won.
Hyundai said its global market share climbed to 5.5% in the third quarter from 5.1% in the previous quarter.
“Hyundai, like many other Korean makers, has created a solid structure to manufacture and deliver products at the lowest cost,” Fujio Ando, adviser at Chibagin Asset management in Tokyo, told Reuters.
“They also have some of the world’s best-known and hot product designers, while Japanese makers are still using domestic designers. Japan has little chance to win this battle.”
“I doubt whether Hyundai will be able to maintain high growth next year, as the won is firming and its rivals are regaining competitiveness. The market environment will get tougher next year,” Chae Hong-guk, a fund manger at Meritz Asset Management, said.
