Sales increased by 4.7% and operating profit turned positive
Offset by improved sales mix despite decline in car sales volume
[Asia Economy Reporter Yu Je-hoon] Despite the global vehicle semiconductor supply shortage in the third quarter of this year, Hyundai Motor Company showed a relatively strong performance.
Hyundai Motor announced on the 26th that its consolidated sales for the third quarter reached 28.8672 trillion KRW, with an operating profit of 1.6067 trillion KRW. Sales increased by 4.7% compared to the same period last year, and operating profit turned positive.
Hyundai's total sales volume in the third quarter was 898,906 units, a 9.9% decrease compared to the same period last year. In the domestic market, sales of new sports utility vehicles (SUVs) such as Ioniq 5, GV70, and Tucson showed strong performance, but due to the vehicle semiconductor supply shortage, sales volume dropped by 22.3% to 154,747 units.
In overseas markets, sales increased in emerging countries such as Latin America, where sales had been depressed last year due to COVID-19, but production disruptions caused by the semiconductor shortage led to a 6.8% decrease in sales volume, totaling 744,159 units.
However, the improvement in the sales mix centered on Genesis and electric vehicles offset the impact of the overall volume decrease and the decline in the KRW-USD exchange rate, resulting in increased sales compared to the same period last year. Operating profit also turned positive, with an operating profit margin of 5.6%.
A Hyundai Motor official explained, "Sales decreased due to production disruptions caused by the semiconductor supply shortage, but operating profit increased due to improvements in the sales mix and reductions in quality costs," adding, "The expansion of the sales proportion of high value-added models such as Genesis and SUVs led to improved profitability."
Meanwhile, Hyundai Motor expects the semiconductor supply shortage to continue for some time. The official stated, "The global semiconductor supply shortage is expected to be prolonged, continuing until the end of this year or next year, and it will take a long time to fully normalize," adding, "We will strive to improve profitability through production and sales focused on electric vehicles and high value-added models, which we have been continuously promoting throughout this year."
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