SEOUL: South Korea’s Hyundai Motor Co said on Thursday second-quarter profit fell 75% on year, the steepest in seven quarters and lacking analyst estimates, as weak international demand as a result of pandemic overshadowed gross sales of high-end fashions at dwelling.
Hyundai’s international retail gross sales fell 33% from the identical interval a year earlier whereas gross sales at dwelling in South Korea – at 200,000 autos, exceeding all different markets – rose 13%, company knowledge confirmed.
Other markets together with the United States, China, Europe and India suffered double-digit proportion gross sales falls.
Domestic gross sales have been led by giant vehicles and sport-utility autos (SUVs) such because the G80 sedan and GV80 SUV from premium model Genesis in addition to Hyundai sedan Grandeur, analysts said.
Even so, gross sales of such higher-margin vehicles weren’t sufficient to offset a plunge in demand in Europe and particularly within the United States, which is reeling from day by day surges in COVID-19 instances.
Hyundai shares have been up 3.3% versus a 0.6% fall within the broader market.
Net profit for April-June fell to 227 billion received ($189.53 million) from 919 billion received a year earlier. That in contrast with the 275 billion received common of 16 analyst estimates compiled by Refinitiv. Revenue fell 19% to 21.9 trillion received.
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