Hyundai Motor posts 48% drop in Q2 net profit on China snub
Seoul, South Korea - South Korea’s top automaker Hyundai Motor on Wednesday posted a 48 per cent drop in second quarter net profit as China retaliated against South Korean exporters over a new US missile defence system.
Hyundai reported net profit of 913.6bn won in April-June, down from 1.764tn won a year earlier.
‘Hammered by fallouts from THAAD, net profit has decreased’, the company said in a statement, referring to the US system known as Terminal High Altitude Area Defence (THAAD).
Sales in China plunged a whopping 64 per cent year-onyear to 105,000 vehicles in the second quarter.
Worldwide, Hyundai sold 1.1mn cars including 182,000 in South Korea in the three months to June, down 13.8 per cent yearon-year.
The company recorded strong sales in emerging markets like Russia and Brazil but falls in China resulted in a drop in overall overseas sales.
Hyundai said it would add new sports utility vehicles to its lineup and start rolling out the next-generation Genesis sedans later this year in the face of mounting competition and slow global growth.
Hyundai along with its affiliate Kia Motors is the world’s fifth largest automaker.