Hyundai Motor Reports 24.2% Drop in Q3 Net Profit

Hyundai Motor Co., the leading automaker in South Korea, reported a 24.2% decrease in net profit for the third quarter of 2023. The company's net profit fell to 1.93 trillion won (approximately $1.4 billion), down from 2.54 trillion won in the same period last year.

The decline is largely due to production disruptions and sluggish global demand, which have posed challenges for the automotive industry amid ongoing economic pressures. Despite these challenges, Hyundai's operating profit increased by 5.5% year-on-year to 2.67 trillion won, aided by favorable foreign exchange rates and cost-cutting measures.

In terms of sales, Hyundai sold 920,710 vehicles globally during the July-September period, with domestic sales plummeting by 27.2% to 131,468 units, primarily due to labor strikes affecting production. Overseas sales also dropped by 8% as global demand weakened.

Looking ahead, Hyundai has expressed concerns over the continued uncertainty in the automotive market and increasing competition from Chinese manufacturers. The company aims to enhance production efficiency and introduce new models in the fourth quarter to address these challenges. A company official stated, "We will respond flexibly to changing demand by offering a diverse range of powertrains."

Additionally, Hyundai has revised its annual wholesale sales target down to 4 million vehicles from 4.15 million and plans to reduce its investment budget. Despite the tough environment, the company remains committed to improving its competitive position in the market.