Companies

Hyundai posts marginal fall in India revenue in Jan-Sept

PTI New Delhi | Updated on October 25, 2012 Published on October 25, 2012

Korean auto major Hyundai today reported a marginal decline in its revenue from India at 3.861 trillion South Korean won (KRW) in January-September period in 2012 despite vehicle sales growing by nearly four per cent.

According a presentation on its website, Hyundai Motor Company (HMC) said revenue from India had stood at 3.869 trillion KRW in the first nine months of 2011.

However, vehicle sales from the company’s subsidiary — Hyundai Motor India Ltd (HMIL) — during the period increased by 3.73 per cent.

HMIL sold a total of 4,78,902 units, including exports, in January-September period this year compared to 4,61,697 units in the year-ago period.

Out of this, sales in the Indian market went up by 6.47 per cent to 2,94,050 units from 2,76,192 units in the same period last year.

Commenting on the performance and the coming period, HMC said: “Competition among major automakers stands to increase, especially due to slowing demands from emerging markets such as China and India, once considered major drivers of the auto industry“.

In the three quarter of 2012, HMC’s sales revenue increased by 7.81 per cent to 61.751 trillion KRW from 57.279 trillion KRW, the presentation said.

Net profit of HMC for the first nine months in this year stood at 7.164 trillion KRW as against 6.102 trillion KRW, up 17.40 per cent.

“Strong overseas sales made up for sluggish demands in the Korean market, resulting in the overall Y-o-Y increase.

Enhanced brand value and increased average selling price especially drove profit margin growth,” the company said.

For the quarter ended September 30, HMC reported a 3.65 per cent rise in its sales revenue to 19.646 trillion KRW from 18.954 trillion KRW.

The net profit in the last quarter increased by 12.93 per cent to 2.166 trillion KRW from 1.918 trillion KRW.

Commenting on the outlook, HMC said: “Hyundai forecasts that business uncertainties in the auto industry will continue through the fourth quarter to next year. Even so, Hyundai will achieve its sales target through various efforts such as offering better quality, differentiated marketing and improved dealer networks“.

Focussing more on emerging markets, the company will put forth its efforts to stabilise operation at its third plant in China and the latest plant in Brazil, both of which started production this year.

“To proactively respond to changing global demands, Hyundai also plans to develop and sell more fuel-efficient and eco-friendly models,” it added.

Published on October 25, 2012
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