Hyundai Motor second-quarter profit slumps due to weak international demand

The logo of Hyundai Motor is pictured at the second media day for the Shanghai auto show in Shanghai, China

South Korea’s Hyundai Motor Co said on Thursday second-quarter profit fell 75% on year, the steepest in seven quarters and missing analyst estimates, as weak global demand due to the pandemic overshadowed sales of high-end models at home.

Hyundai’s global retail sales fell 33% from the same period a year earlier whereas sales at home in South Korea – at 200,000 vehicles, exceeding all other markets – rose 13%, company data showed.

Other markets including the United States, China, Europe and India suffered double-digit percentage sales falls.

Domestic sales have been led by large cars and sport-utility vehicles (SUVs) such as the G80 sedan and GV80 SUV from premium brand Genesis as well as Hyundai sedan Grandeur, analysts said.

Even so, sales of such higher-margin cars were not enough to offset a plunge in demand in Europe and especially in the United States, which is reeling from daily surges in COVID-19 cases.

Hyundai shares were up 3.3% versus a 0.6% fall in the broader market.

Net profit for April-June fell to 227 billion won ($189.53 million) from 919 billion won a year earlier. That compared with the 275 billion won average of 16 analyst estimates compiled by Refinitiv.

Revenue fell 19% to 21.9 trillion won.

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