Hyundai Mo­tor posts 48% drop in Q2 net profit on China snub

Muscat Daily - - BUSINESS -

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.

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