Hyundai Reports Record Profit

SEOUL, South Korea — Hyundai Motor Co. outshined its global rivals by reporting a record quarterly profit on Thursday, as a weak won helped overseas sales and government incentives boosted domestic demand for cars.

Net income for the April-June quarter soared 48 percent to 811.9 billion won, or $650 million, South Korea’s largest car maker said in a statement. The figure compared with 546.9 billion won in net profit a year earlier and a 225 billion won profit in the first quarter of this year.

Sales rose to 8.08 trillion won from 6.03 trillion won in the first quarter but fell from 9.11 trillion won a year before.

Like its competitors, Hyundai has been hit by falling demand amid the global economic downturn. But it has worked aggressively to expand its market share amid the chaos, seizing on its improving global brand image, a growing appetite for smaller cars and the benefits of a weak South Korean currency, which makes Korean cars cheaper abroad.

The won’s value in the second quarter was down 20.8 percent against the U.S. dollar from a year earlier.

Hyundai’s overseas affiliates, especially those in China and India, contributed to the strong numbers, Hyundai said payday loans. Sales in China during the first half of this year surged 56 percent.

In the first half of the year, Hyundai’s global market share reached 5 percent for the first time. It carved out 4.3 percent of the United States’ light vehicle market, compared with a 3.1 percent share a year earlier, thanks to stronger sales of its Elantra and Accent small cars. In contrast, Toyota Motor Corp. and General Motors Corp. saw their market shares slipping in the same period.

At home, Hyundai attributed the gain to rising demand for new vehicles spurred by government incentives to trade in older models, like tax cuts and easier consumer financing. Overseas, it also increased its marketing expenditures to lure customers into its showrooms.

Hyundai, together with its affiliate Kia Motors Corp., forms the world’s fifth-biggest automotive group.

Hyundai Reports Record Profit

01:42 - 2009-Jul-23