Hyundai Motor Co. achieved a 37 percent increase in profit for the second quarter this year, as it increased production in order to fill the gap caused by disruptions at Japanese rivals. Specifically, the company’s net income was 2.3 trillion won ($2.2 billion) during the period ended June 30 versus the 1.68 trillion won it achieved on the same period last year.
The company’s sales increased 19 percent to 20 trillion won, thanks to fuel- efficient models like Accent and Elantra.
Hyundai increased production abroad to beat gains in the South Korean won and take advantage of the production shutdowns in the factories of Honda Motor Co. and Toyota Motor Corp. after the March earthquake in Japan.
Analyst Cho Soo Hong at Woori Investment & Securities Co. has shared that the significant sales growth of Hyundai has been sufficient to offset the strong performance of the won lately.
The analyst further stated that the company will be facing tougher rivals in markets abroad especially now that the production of Japanese vehicle manufacturers is returning to normal.
This year, the won has advanced 6.5 percent, making it the second best performing currency in Asia this year. Hyundai CFO Won-Hee Lee stated that the strong won is a concern, as it hurts South Korea's exporters due to cuts in the value of repatriated earnings.
Hyundai Motor sales volume for the second quarter increased 13 percent to 1.04 million units, according to a statement from the company.
Domestic sales increased 16 percent, and overseas sales gained 12 percent. The company will launch new models in the second half of 2011 to rival Toyota's Camry sedan, Lee stated.