Hyundai Motor Co. and its smaller affiliate Kia Corp. are set to post an operating profit exceeding 8 trillion won (US$5.7 billion) in the second quarter on improved product mix and production adjustments, a domestic survey showed Sunday.
Hyundai and Kia are estimated to report an operating profit of 4.28 trillion won and 3.76 trillion won, respectively, in the three months ended in June, according to a Yonhap Infomax survey of local brokerages.
Hyundai and Kia’s second-quarter operating income likely rose 1 percent and 11 percent, respectively, from the same period of last year, the survey showed.
The carmakers’ timely response to the electric vehicle “chasm,” their focus on high-end sport utility vehicles, such as the GV80, particularly in the U.S. market, and a weak won likely helped the quarterly bottom line, analysts said.
The dollar rose to an average of 1,370.91 won in the June quarter from 1,314.68 won a year earlier, according to data from the Bank of Korea. A weak won drives up an exporter’s do
llar-denominated income when converted into the local currency.
The two carmakers began to strengthen their gasoline hybrid model lineup early this year as the global EV market has entered a stagnation phase, known as the chasm, which occurs before the widespread adoption of EVs.
Hyundai’s sales are forecast to rise 4 percent on-year to 43.99 trillion won, while Kia’s are projected to increase 5.6 percent to 27.7 trillion won during the same period.
Source: Yonhap News Agency
