business

Hyundai capitalizes on record-breaking sales as Q2 gains surge by 56%

Hyundai capitalizes on record-breaking sales as Q2 gains surge by 56%

South Korean automotive manufacturer, Hyundai Motor Company has reportedly capitalized on the weakening rate of the Korean won and an improved product mix to account for a staggering 56% jump in profits in the second quarter of 2022.

The net profit of the second quarter which culminated in June surged to USD 2.34 billion from around USD 1.5 billion, which was the estimated number for 2021. Notably, in just six months, these figures, generated from the sale of nearly 1.88 million vehicles, showcase that the company successfully achieved 43% of its total sales target for 2022.

This development is mostly driven by soaring sales of Hyundai’s independent Genesis brand, a weaker won compared to the dollar, and limited incentives. The Bank of Korea has revealed that the U.S. dollar rose to an average of USD 0.96 in the second quarter from USD 0.85 in the previous year.

Commenting on this surge, Hyundai Motors has stated that the aforementioned factors have managed to overshadow the off-putting outcomes and the heavy losses that the company suffered due to disruptions in the supply chain and a prolonged shortage of chips.

It is worth mentioning that operating profits for the June quarter of 2021 surged 58% from USD 1.43 billion in the previous year to USD 2.26 billion. On the other hand, sales rose from approximately USD 23 billion in 2021 to USD 27 billion for the same timeframe.

Similarly, between January to June, net profits accounted for a momentous 39% leap from the previous year’s USD 2.6 billion to around USD 3.7 billion this year, whereas sales showcased a 15% jump from approximately USD 44 billion to around USD 50 billion, respectively.

Despite the optimistic outlook, the company asserted that challenges are expected to plague the auto sector with the comeback of the COVID-19 cases, rising interest rates, and higher costs of raw materials due to the Russia-Ukraine war.

Source Credits –

https://www.business-standard.com/article/companies/hyundai-sells-1-88-mn-vehicles-in-first-six-months-q2-profit-jumps-56-122072100466_1.html

About the author

Rashi Thakkar

Rashi Thakkar

Rashi started her journey in content when she was completing her MBA. Since then, she has helped well-known startups and businesses boost their online presence. Currently Rashi pens downs insightful articles for AlpenHornNews and various other websites, covering an array of sectors from finance and business to technology and healthcare.