Hyundai Motor Reports Record Quarterly Profit Amid Market Challenges

Hyundai Motor announced a record quarterly profit and revenue on Thursday, driven by strong sales of high-margin vehicles, particularly premium SUVs and hybrids. The company reported a net profit of 4 trillion won ($2.9 billion) for the April-June period, marking a 23% increase from the previous year and surpassing analyst expectations. This performance comes as other automakers, including Ford and Tesla, face declining consumer demand, raising concerns in the industry. Despite the positive results, Hyundai cautioned about an uncertain future due to increasing price competition and the impact of inflation and high interest rates on consumer purchasing power. The automaker noted that as demand weakens, competition is expected to intensify, leading to a rise in incentives to attract buyers. This sentiment reflects broader market challenges that have affected sales in South Korea, where domestic vehicle sales fell by 10% in the second quarter. In the U.S. market, Hyundai's vehicle sales increased by 2.2%, with high-margin SUVs making up approximately 80% of total sales. The company also reported a significant 42% rise in hybrid vehicle sales compared to the same period last year. The favorable exchange rate, with the won depreciating against the dollar, further contributed to Hyundai's profit growth by enhancing overseas sales. Looking ahead, Hyundai's Chief Financial Officer expressed confidence that even if former President Donald Trump were to win the upcoming election, the Inflation Reduction Act, which supports clean energy initiatives, is unlikely to be repealed.