Hyundai Motor has taken the automotive world by storm with its second-quarter earnings. The South Korean giant cruised past Wall Street’s expectations, leaving analysts scrambling to update their forecasts.
Hyundai reported a net profit of a staggering 4.174 trillion won, or about $3.02 billion, marking a 25% jump from the previous year. This blew past the consensus estimate of 3.488 trillion won, causing quite the stir.
Revenue wasn’t left in the dust either, revving up by 6.6% to hit 45.021 trillion won. As for operating profit, Hyundai shifted into high gear, posting an all-time quarterly high of 4.279 trillion won. Talk about setting new records!
Despite a minor bump in the road with global wholesale car sales dipping 0.2%, North America proved to be Hyundai’s racetrack, with sales there accelerating by 15%. It seems Americans can’t get enough of Hyundai’s hybrid electric vehicles and SUVs, even as pure electric car demand idles.
The U.S. dollar’s muscle-flexing against the won gave Hyundai’s earnings an extra horsepower boost, making those profits shine even brighter.
But not everything was smooth sailing. In South Korea, the local market hit a pothole, with wholesale car sales skidding down by 9.6%. Yet, Hyundai’s global outlook remains upbeat. The company is betting big on hybrid cars in the short term and envisions pure EVs leading the green vehicle charge in the long run.
Analysts are cautiously optimistic. They foresee fierce competition ahead but commend Hyundai for deftly navigating the slowdown in pure EV demand by showcasing a well-rounded lineup of hybrids and luxury SUVs.
Looking to the future, Hyundai is set to roll out new Ioniq EV models in the latter half of 2024. Not stopping there, it plans to revamp its Santa Fe and Tucson SUVs, aiming to broaden its hybrid and pure EV offerings.
Hyundai’s stock has had a stellar year, accelerating by roughly 25%. Buckle up, because it looks like Hyundai is in for an exciting ride ahead!
(Source: Bloomberg | Korea Herald)
