Strong sales worldwide in the first quarter of 2023 helped Hyundai Motor's profits. The carmaker released the financial results on April 25, with net profit growing 92.4% year-over-year.
Highlights of Hyundai Motor's 1Q 2023 results | ||
Item | Results (KRW billion) | YoY change (%) |
Revenue | 37,778.7 | 24.7 |
Operating profit | 3592.7 | 86.3 |
Operating margin(%) | 9.5 | |
Net profit | 3419.4 | 92.4 |
Source: Hyundai Motor, compiled by DIGITIMES Asia, April 2023
Hyundai sold 1.02 million cars in the first quarter of this year, increasing by 13.2% from the previous year. It said battery EV sales rose 48% to almost 66,000 units.
As chip and component supplies stabilized globally, the company saw production improve, causing a 10.7% growth in sales overseas and 25.6% in the South Korean market.
Hyundai said the sales increase and favorable exchange rates helped the company grow 24.7% in revenue while facing a challenging economic environment.
According to Reuters, Lee Jae-il, an analyst at Eugene Investment & Securities, said raw material prices have dropped since late 2022, facilitating Hyundai's improved profitability.
Hyundai and Kia vehicles are competitive in the US with their prices. However, as US Inflation Reduction Act (IRA) took effect, Hyundai and other EVs assembled outside North America are not eligible for the tax credits. Automotive industries across countries have raised concerns about the regulation.
When asked about the issue on the earnings call, Seo Gang Hyun, head of Hyundai's planning and finance division, said SUVs and its luxury Genesis models powered by gasoline still took up a more significant portion of Hyundai's US sales. Therefore, the impact of IRA would not be as substantial as expected.
