3Q revenue increased 2.3% Y/y to KRW 27.58 trillion
• 3Q global sales volume decreased 9.6% Y/y to 997,842 units
• Company posted an operating loss of KRW 313.8 billion and a net loss at KRW 188.8 billion on provision costs and lower sales volume
• Overall business performance continued improving, excluding quality-related expenses
• Company will continue enhancing profitability with a strong new model lineup amid persisting uncertainty from COVID-19
SEOUL, October 26, 2020 – Hyundai Motor Company today announced its business results for the third quarter of 2020. The third-quarter revenue increased 2.3 percent year-over-year to KRW 27.58 trillion from KRW 26.97 trillion a year earlier.
An enhanced product mix helped by robust sales of SUV models and Genesis luxury brand models as well as declining incentives helped lift revenue in the third quarter despite an adverse economic environment and an unfavorable exchange rate. Robust sales in India and Russia also contributed to higher revenue.
The company sold 997,842 vehicles around the globe in the July-September period, a 9.6 percent decrease from the same period last year. Total sales in markets other than Korea dropped by 15 percent to 798,791 units as industry demand remained weak in almost all markets around the world. Sales in Korea rose 21.9 percent to 199,051 units, led by newly launched models such as Genesis GV80 SUV and G80 sedan as well as the Hyundai Elantra compact sedan.
Hyundai recorded a third-quarter operating loss of KRW 313.8 billion, while net loss stood at KRW 188.8 billion. Third-quarter results reflect engine-related provision expenses as the company took preemptive measures to ensure customer safety and cover any possible future increase in quality-related expenses.
Excluding the provision, the business performance exceeded market expectations despite the persistently weak global demand caused by the COVID-19 pandemic.
For the first nine months of 2020, Hyundai’s global sales totaled 2,605,189 units while revenue reached KRW 74.75 trillion. Nine-month operating profit stood at KRW 1.14 trillion and net profit was KRW 741.2 billion.
Hyundai will focus on enhancing profitability and normalizing sales in markets around the globe amid continued concerns over the resurgent COVID-19 and a potential unfavorable shift in the currency environment.
The company will concentrate on boosting sales of new models including its SUV lineup. In particular, the company strives for the success of the all-new Tucson SUV and the upcoming Genesis GV70 luxury SUV in the global market.
Furthermore, Hyundai will improve its business processes, implementing a company-wide system to ensure early detection of any potential issues throughout vehicle development and prevent quality issues from repeating.
Hyundai continues its endeavor to lead transformation in the automotive industry with its IONIQ dedicated EV lineup brand and it will further accelerate the
electrification of mobility with its market-leading fuel cell technologies.
