Hyundai Gives Up Its Initial Sales Target for Second-Half image

Hyundai gave up its initial global sales target due to worse-than-expected economic situation in Europe and China.

Hyundai now expects global sales of 77.1 million units in the second half of 2012, down 500,000 units from the initial forecast in April. In Europe industrywide demand is expected to drop with 6.43 million vehicles, after 7.65 million units were sold in the first half of 2012. The company revised its target after overall deliveries in Europe fell 3.2%.

“The economic situation in Europe will worsen in the second half of this year,” Hyundai’s Lee said in a conference call in Seoul today. “Still, Hyundai will be able to meet the global sales target we set earlier this year.”

Despite the slow economy, Hyundai managed to achieve second-quarter profit better than what the analysts estimated, thanks to the ix35 SUV which boosted the company’s sales. Net income increased 10% to 2.55 trillion won ($2.2 billion), compared to last year’s 2.31 trillion, and revenue was up 9.2% to 21.94 trillion won. Thanks to the ix35, also known as the Tucson outside of Europe, sales were up 18%, at a moment when industrywide deliveries on the continent decreased 3.2%.