South Korean legacy automaker Hyundai Motor enjoyed record profit in the second quarter of the year owing to its success in the US market, according to Reuters. The company is expanding its hybrid portfolio to further boost sales in the coming quarters.
Hyundai posts record Q2 2024 profit
Hyundai Motor enjoyed record-breaking quarterly profit and revenue primarily due to high-margin car sales growth in Q2 2024, according to its earnings report on Thursday.
Hyundai achieved a net profit of 4 trillion won ($2.9 billion) in the second quarter, indicating a 23% increase from the prior year. This recent result marks the company’s highest quarterly record since Q2 2022.
In addition, Hyundai surpassed the 3.4 trillion won net profit average of 21 analyst estimates, per LSEG SmartEstimate’s compilation.
The popularity of Hyundai’s premium SUVs and hybrid vehicles in the US has contributed to this major success. It enabled the company to beat some of its closest rivals and counterbalance a prolonged sales decline in the domestic market.
Hyundai’s US vehicle sales reportedly surged 2.2% in Q2 2024, with high-margin SUV sales accounting for around 80% of the total.
In South Korea, Hyundai’s vehicle sales dropped 10% in Q2 204. It indicates a notable improvement from the 16% sales decline in the prior quarter.
Hyundai to boost hybrid lineups
Hyundai Motor also announced plans to boost its hybrid vehicle lineups to prepare for anticipated changes in electric vehicle policies after the US election.
Hyundai Chief Financial Officer Lee Seung Jo believes that the US will not ditch Biden’s Inflation Reduction Act even if Trump prevails in the election. However, Lee asserted that Hyundai will continue to observe potential policy changes and plans to expand hybrid lineups “to prepare for possible shrinking of the IRA package.”
In addition, the South Korean legacy automaker also cited an uncertain market outlook due to the intensifying price war amid increasing inflation and high interest rates that continue to pressure consumers.
“As consumer demand for autos is weakening, we expect there will be more competition and the amount of incentives is also likely to increase… creating a tougher business outlook.”
Hyundai
Hyundai’s decision to boost its hybrid lineup is unsurprising, given its remarks about hybrid vehicles being equally profitable as gasoline cars amid waning battery-electric vehicle demand. The company’s hybrid vehicle sales in the US reported a notable 42% YoY sales increase in Q2 2024.
Despite the intensified hybrid vehicle push, Hyundai remains committed to an all-electric vehicle future by doubling down on its popular IONIQ lineup and new affordable models like the Casper Electric (Inster EV overseas).
