Hyundai Motor’s 2Q20 ResultsBy Alejandro Enríquez | Wed, 08/05/2020 - 10:35
Hyundai presented its preliminary results for 2Q20. The fifth-largest automaker in the world saw a EBIT of ₩$596 billion (US$500 million), which represented a 57 percent decrease compared to the same quarter last year. Net income is expected to decrease by 62.2 percent. The company performed favorably in its domestic market while facing double digit negative growth overseas.
Sales per region took the worst hits in India and South America where the company saw an expected 77.7 percent and 72.8 percent decrease, respectively. In China, there are signs of recovery as the company reports a 2.7 percent increase in demand. As for North America, sales decreased 37.3 percent from 215,000 units sold in 2Q19 to 135,000 units in 2Q20. The South Korean company, which also encompasses Kia, saw a stronger performance in its Genesis brand by doubling its contribution to total sales going from 2.5 percent in 2Q19 to 5.4 percent in 2Q20.
Hyundai has taken a bold approach in terms of marketing efforts. Recently, the company embarked in a venture with BTS, the globally known South Korean boy band to present "an invitation to a sustainable future." "BTS and Hyundai Motors are presenting a sustainable future through hydrogen energy. We now invite the future generation to this journey to add their positive energy," said the company on a statement. Hyundai was recently a worldwide trend in Twitter due to one of the members of the music group purchasing a Genesis GV80, the brand’s first luxury SUV. In its preliminary 2Q20 report, the company stated the record high sales of the Genesis brand.
Within its three divisions, automotive, finance and others, the company acknowledges that lower sales affected the 23.6 percent decrease in automotive and 18.1 percent decrease in the others division. Regarding its financial services, the company presented a modest 4.5 percent growth due to strong growth in retail loans.
Hyundai Motors also presented its sales results for July and although total sales saw a 1.1 percent increase compared to June, they are still 12.5 percent below July 2019. In terms of accumulated sales, the decrease is at 22.7 percent. In Mexico, Kia is fifth in terms of sales with 95,539 units sold in 2019 while Hyundai remained in 10th place with 45,607 units. If combined, they hold fourth place slightly behind Volkswagen, GM and Nissan. Hyundai and Kia combined saw a 31.7 percent sales decrease in Mexico during 1H20, compared to 1H19.