SEOUL - Hyundai Motor Co., South Korea's largest carmaker, reported a dramatic increase in its net income for the third quarter of this year, largely driven by robust growth in its global sales.
According to a new release by the Yonhap News Agency, Hyundai's consolidated net profit for the July-September period rose 134 percent year-on-year to 3.3 trillion won (US$2.4 billion).
The company's sales also saw substantial growth, registering an 8.7 percent increase year-on-year to reach 41 trillion won. Operating profit followed a similar trend, surging 146.3 percent to 3.82 trillion won. These figures exceeded market expectations, with the average analyst estimate for net profit standing at 2.87 trillion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.
Hyundai disclosed that it sold 1,045,510 vehicles in the global market during the third quarter, a 2 percent uptick compared to the same period last year. One notable highlight was a 33.3 percent increase in global sales of the company's eco-friendly vehicles, primarily due to an enhanced lineup of hybrid electric vehicles, including new models under its Ioniq brand.
The company revealed that the rate of hybrid units among its total cars sold for the quarter rose to 8.6 percent, up from 5.7 percent the previous year. Sales of electric vehicles also saw an increase, climbing to 6.3 percent from last year's 5.1 percent.
Genesis, Hyundai's luxury brand, also saw improved sales, making up 5.1 percent of all Hyundai models sold during the third quarter, a slight increase from last year's 4.9 percent. The sales composition of SUV models, excluding those from Genesis, rose to 54.7 percent from 50.6 percent a year ago. When including Genesis SUV units, the rate climbed to 57.8 percent.
While celebrating its strong performance, Hyundai also acknowledged potential challenges on the horizon. These include current geopolitical tensions in the Middle East, persistent inflation, and the possibility of reduced demand in emerging economies due to high interest rates.
To maintain momentum, Hyundai announced plans to enhance the global recognition of its Ioniq brand and expand sales of its eco-friendly vehicles. The company also intends to introduce an updated Genesis GV80 model and a GV80 coupe to improve the product mix of its premium models.
Despite the positive earnings report, shares of Hyundai Motor closed 1.37 percent lower at 179,500 won on Thursday, aligning with the Korea Composite Stock Price Index's 2.71 percent drop.