Hyundai Motor net profits up by 104.5 percent helped by India and China operations

Hyundai Motor Company has announced that its net profit increased by 104.5 per cent to 29.615 trillion Won from a year earlier helped by brisk sales in China and India which on a unit sales basis posted y-o-y gains of 93.6 per cent and 14.4 per cent, respectively. South Korea's largest automaker, saw 2009 sales rise 11.7 per cent y-o-y to 3,106,178 units (domestic plants: 1,611,991 units, overseas 1,494,187 units) a year earlier. 

 

Despite the 23 per cent y-o-y sales improvement in its home market in Korea to 701,469 units and the Korean won's appreciation against the US dollar (15 per cent gain) and the Euro (10.1 per cent gain), Hyundai saw 2009 sales revenues slip by 1.0 per cent y-o-y to 31.859 trillion won on reduced export shipments from its Korean plants. 

 

Aided by favourable exchange rates and the company's widely implemented cost-cutting efforts, operating profit also rose by 19.1 per cent to 22.350 trillion won despite higher marketing, dealer and brand development expenses which are necessary to secure future competitiveness. 

 

Domestic sales recovered by 23.0 per cent y-o-y thanks to the successful launch of new models, Equus, Tucson ix and Sonata and tax benefits extended between May and December to new car buyers trading in vehicles 10 years or older.  However, export sales from the three Korean plants fell 17.1 per cent to 910,522 units due to reduced demand in Russia while production of the i30 compact hatchback picked up pace at the newly opened manufacturing plant in Czech. 

 

By region, Hyundai saw a rise in market share in developed countries such as the United States and the EU despite strong headwinds in those regions last year.  In China, Hyundai registered an impressive 94 per cent growth in sales by selling 570,300 units and become the 4th largest company in the country.