Nation’s largest carmaker confident of achieving this year’s sales goal globally


Hyundai Motor said Thursday it posted record sales in the first half of this year, largely driven by strong sales growth in overseas markets, including the European market.

The nation’s largest carmaker said it earned 42.1 trillion won ($36.7 billion) in the first six months of this year, up 9.9 percent from the same period last year. Its operating profit jumped 21 percent to 4.78 trillion won. Both figures were a record high.

Globally, the company sold more than 2.18 million cars in the first half, 11.5 percent growth over the same period last year.

While its domestic deliveries decreased 4.6 percent to 327,963 units due to slowing demand here, the company’s overseas business continued to perform well selling 1.85 million cars, up 14.9 percent from last year.

“Despite sluggish domestic sales since the latter half of last year, we could maintain the growing trend by focusing resources more on overseas markets,” said a Hyundai official.

“We can expand presence in emerging markets as well as in advanced markets by guaranteeing product quality, carrying out new marketing strategies and improving sales bases.”

In Europe, where car sales have fallen to their lowest level in a decade amid a deepening financial crisis, Hyundai continued its growth by introducing new cars targeting the region exclusively and opening new sales arms in Germany and France.

During the second quarter alone, the carmaker saw its operating profits and sales surge 17.7 percent and 9.2 percent to 2.5 trillion won and 21.9 trillion won, respectively, compared to the same period last year.

The company predicted that the uncertainty surrounding the global car industry could be bigger than ever in the second half of this year, saying countries have failed to introduce stimulus programs against the lengthy slump, unlike during the 2008 financial crisis.

With global car demand continuing to plunge, Hyundai said, competition among carmakers will get fiercer in the latter half as they make all-out efforts such as extending discounts for car purchases.

The Korean auto giant, however, expressed confidence in achieving the company’s sales goal this year based on its strong performance in overseas markets and cost-cutting efforts.

“In Europe, we will achieve the sales goal with introductions of new cars such as i30 and i40. Despite a slowing demand for compact cars in China, we will be expanding deliveries of large sedans and sport-utility vehicles, for which the Chinese demand has soared since the Beijing Olympics,” said a company executive at a conference call held on Thursday at Hyundai headquarters.

“Even though the market situation will continue to deteriorate in the second half, Hyundai Motor is expected to achieve this year’s sales goal, possibly slightly exceeding the original goal.”

The company plans to step up efforts to secure product quality following openings of new factories in China and Brazil this year, while enhancing brand awareness and customer service in global marekts.

By Lee Ji-yoon (jylee@heraldcorp.com)