Because of the sales struggle on the Chinese market, Hyundai has posted another losing quarter in terms of profit.
South Korea’s largest automaker, and the world’s fifth-biggest automaker, has started this year with the first monthly global sales decline since July 2014, pushed down by a slow demand in China, following the lowest 2015 profit result in five years. But even worse than that, it was for the eighth consecutive quarter in which Hyundai’s profits dropped. The company’s numbers are not improving, as it just posted the ninth quarterly profit for the first three months through March. Hyundai’s net income for the period fell to 1.69 trillion won (1.5 billion dollars), while the operating profit hit 1.34 trillion won, below expectations. The main reason behind this downward trend is the slow pace in China, Hyundai biggest market by volume sales, which offset positive sales on other important regions.
The automaker’s retail sales in South Korea rose 3.7 percent to 161,000 units, helped by demand for the Tucson SUV and Avante sedan, while sales in the US increased 0.8 percent to 173,000 vehicles and in India climbed 12 percent to 111,000 units. However, numbers in China went down 9.6 percent to 240,000 units. Hyundai does not foresees better prospects for 2016 and it set a 2016 global sales target of over 5 million vehicles.