Hyundai Motor 3Q Operating Profit 3.82 Trillion KRW... Largest Ever 3rd Quarter (Update)

146.3%↑ YoY
Global Wholesale & Eco-friendly Vehicle Sales Up 2% & 33.3% Respectively

Hyundai Motor Company announced on the 26th that its Q3 earnings for this year are KRW 41.0027 trillion in sales revenue, KRW 3.8218 trillion in operating profit, and KRW 3.3035 trillion in net profit. Vehicle sales totaled 1,045,510 units.

Compared to Q2 of this year, which recorded the highest-ever performance, there was a slight decline. Operating profit fell 9.8% from KRW 4.2379 trillion in the previous quarter, and sales revenue (KRW 42.2497 trillion) also decreased by 3%. Net profit declined by 1.3% compared to KRW 3.3468 trillion recorded in Q2.

In the global market this quarter, Hyundai sold 1,045,510 vehicles, a 2% increase compared to the same period last year. Domestic sales rose 2.8% year-on-year to 166,969 units. Hyundai stated that sales centered on SUVs increased, including the fully redesigned Santa Fe model launched in August. Overseas, production increased due to improved parts supply conditions, and strong sales in key markets such as North America, Europe, and India led to sales of 878,541 units, up 1.9% year-on-year.

Sales of eco-friendly vehicles reached 168,953 units, a 33.3% increase year-on-year, driven by an enhanced hybrid lineup and expanded sales of the dedicated electric vehicle brand Ioniq.

Santa Fe Complete Redesign Model
[Photo by Hyundai Motor Company]

Operating profit for Q3 this year was KRW 3.8218 trillion, a 146.3% increase compared to the same period last year. This is the highest operating profit recorded for a third quarter. The previous record was KRW 2.0989 trillion in Q3 2011. Hyundai analyzed that this increase in operating profit was due to positive factors such as expanded sales volume and improved mix focusing on high value-added models, along with a base effect from the provision for sales warranties set in Q3 last year, resulting in a significant year-on-year increase.

Sales revenue rose 8.7% year-on-year to KRW 41.0027 trillion. The increase in sales volume and improved sales mix centered on Genesis and SUVs were cited as reasons for the strong performance. Cumulative results up to Q3 this year are sales of 3,127,037 units, sales revenue of KRW 121.0311 trillion, and operating profit of KRW 11.6524 trillion.

Genesis GV80
Photo by Hyundai Motor Company

Hyundai expects favorable future performance due to expanded demand in key regions. However, it anticipates that unpredictable business environments will continue, including geopolitical impacts such as conflicts in the Middle East, concerns over demand contraction mainly in emerging markets due to inflation expansion and high interest rates. It also expects sales expenses to continue rising in Q4 due to increased exchange rate volatility and intensified competition among companies.

Accordingly, Hyundai will focus on expanding eco-friendly vehicle sales through enhancing global awareness of the electric vehicle brand Ioniq and continuously strengthening the hybrid lineup, maximizing sales through production and sales optimization, and expanding market share and defending profitability by improving the mix centered on high value-added models such as the Genesis GV80 facelift and the GV80 Coupe launch.

A Hyundai Motor Company official said, “The trend of continuous sales expansion is ongoing due to increased demand in key markets, and annual sales growth is expected this year based on low inventory levels and the new Santa Fe effect,” but added, “Uncertain business environments are expected to persist due to external macroeconomic volatility such as geopolitical risks in the Middle East and high interest rates.”