Hyundai posts profit in the first quarter of 2009
Hyundai announced its first quarter net profit stood at 225 billion won ($181 million), falling 42.7 percent from a year earlier. As the company has spent more money on marketing expenses to raise the brands awareness and enhance its dealers, Hyunda is operating profit declined 71 percent compared to last year.
In the first three months of fiscal year, the Korean largest car-company sold 621.718 vehicles (exports and domestic: 316.366 units, overseas plants: 305.352 units) worldwide. Due to the slowing global new-car demand, the company has sold 13 percent less vehicles than in a year earlier.
Inspite of lower first quarter sales, Hyundai Motor Company managed to increase its global market share from 4.0 percent to 4.7 percent. The automaker achieved this by strengthening its sales efforts in existing markets, as well as boosting activities in emerging markets to create new sales.
Thanks to a wide range of fuel efficient cars such as Accent, Elantra, i20 and i30, Hyundai posted only a limited sales decline when compared to many of its main rivals. In the coming months Hyundai will continue to improve profitability of its small- and medium-sized cars, while introducing new, higher-end models.
For example, the automaker is going to increase production of its four-cylinder powered cars and spend more on advertising its latest products such as the 2010 Genesis Coupe. The company also plans to introduce two important new models by years end. Both, the 2010 Sonata sedan and next generation Tucson (codenamed LM) will be introduced to Korean consumers in September.