Hyundai Motor, Kia beats Toyota in operating profit

May 13, 2024, 09:56 am

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Hyundai Motor Group Executive Chair Chung Eui-sun/ Source: Hyundai Motor Group

AsiaToday reporter Kang Tae-yoon

Hyundai Motor Group topped others among the world’s five biggest carmakers including Toyota and Volkswagen, in terms of operating profit margin in the January-March period, as the South Korean carmaker’s operating profit ratio exceeded 10 percent. Hyundai Motor Group beat Volkswagen to rank second for the first time after Toyota Group in operating profit with its quarterly operating profit of nearly 7 trillion won, while its global automobile sales have continued to rank third for the third consecutive year. Analysts say that the company has proven its global competitiveness by demonstrating its achievement in the global market.

According to the industry on Sunday, Hyundai Motor Group’s two major car-manufacturing affiliates – Hyundai Motor Co. and Kia Corp. – reported a combined operating profit margin of 10.4 percent, followed by Toyota Group with 10 percent. In terms of Kia alone, the figure stands at 13.1 percent, far exceeding that of luxury brands such as BMW with 11.4 percent and Mercedes Benz with 10.7 percent. The industry observers interpreted the figure as an indicator that the company is not pouring out sales and promotions in a hurry.

Hyundai Motor Group posted an operating profit of 6.98 trillion won (US$5.08 billion), the second highest after Toyota Group with 9.8 trillion won. The South Korean carmaker beat Volkswagen Group with 6.7 trillion won for the first time.

Industry analysts say that Hyundai Motor Group Chairman Chung Eui-sun’s strategy for high-end models and electrification worked well in the global market. Since 2020, when Chung took office as chairman, the company’s sales have been on a surge. It ranked fourth in 2021, beating GM, and immediately became one of the “top three” the following year.

#Hyundai Motor #Kia #operating profit