[Alpha Biz=(Chicago) Reporter Kim Jisun] Hyundai Motor continued its high performance in the second quarter following the first quarter. 

 

Despite global uncertainties such as slowing demand from interest rate hikes and increased sales incentives under the U.S. Inflation Reduction Act (IRA), the company is said to have achieved its best performance for three consecutive quarters thanks to premium and eco-friendly sales strategies and favorable exchange rate effects.

Hyundai Motor held a conference call at its Yangjae headquarters in Seoul on the 26th and announced its second-quarter management performance. Hyundai Motor's sales in the second quarter (April-June) rose 17.4 percent on-year to 42.2497 trillion won and operating profit rose 42.2 percent on-year to 4.2379 trillion won. In the auto sector, sales rose 19% year-on-year due to increased sales due to increased production, improved mix centered on high value-added models, and price hikes in some regions, and operating profit increased 55% year-on-year, including consolidated adjustment.

Major reasons for the increase and decrease were a 2.3412 trillion won increase in sales volume due to a recovery in production, and a 1.8525 trillion won improvement in the mix centered on high value-added models. In addition, sales rose 17.4 percent on-year to 1.685 trillion won from a rise in the won-dollar exchange rate. In the case of operating profit, 201.2 billion won had a positive effect on mix calculations centered on high value-added products such as Genesis, despite the 500.5 billion won increase in volume due to the recovery in production and the increase in some incentive costs due to the base last year.

The sales cost ratio was 79.0%, down 0.4% point from the same period last year. Sales management costs rose 5.3 percent to 4.655 trillion won due to increased new car marketing costs and increased research costs, but the ratio of sales management costs to sales was 11.0 percent, down 1.3 percentage points from a year earlier.

As a result, operating profit in the second quarter of 2023 rose 42.2% year-on-year to 4.2379 trillion won. This is the largest operating profit in history on a quarterly basis, and Hyundai Motor recorded the highest operating profit for three consecutive quarters.

 

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