SEOUL - Hyundai Motor Co. and its affiliate Kia Corp. are projected to post a combined operating profit exceeding 8 trillion won ($5.7 billion) for the second quarter, buoyed by a strong product mix and strategic production adjustments.
According to Yonhap News Agency, Hyundai is expected to announce an operating profit of 4.28 trillion won, while Kia's figure is likely to reach 3.76 trillion won for the three months ending in June. This represents a year-on-year increase of 1 percent for Hyundai and 11 percent for Kia. Analysts attribute the robust performance to several factors, including an effective response to the electric vehicle market slowdown, a focus on high-end SUVs like the GV80 in the U.S. market, and benefits from a weaker Korean won. The dollar's rise to an average of 1,370.91 won in the June quarter, up from 1,314.68 won the previous year, has favorably impacted the carmakers' dollar-denominated income when converted to the local currency.
Furthermore, Hyundai and Kia have been enhancing their gasoline hybrid model lineup since early this year, in anticipation of a temporary slowdown in the global electric vehicle market, referred to as the "chasm" phase preceding widespread adoption.
Projected sales figures also reflect positive trends, with Hyundai's sales expected to rise by 4 percent to 43.99 trillion won, and Kia's by 5.6 percent to 27.7 trillion won.