Hyundai Motor Co posted on Thursday a rise of 59 per cent in second-quarter profit as a weak won currency lifted the value of overseas earnings and demand stayed strong for the South Korean automaker’s high-margin sport-utility vehicles (SUVs).
“A robust sales mix of SUV and Genesis luxury models, reduced incentives from a lower level of inventory, and a favourable foreign exchange environment helped lift revenue in the second quarter, despite the slowdown in sales volume amid an adverse economic environment,” Hyundai Motor said in a statement.
The strong results come amid an easing of a global chip shortage, which helped Hyundai resume overtime and weekend shifts at its domestic plants, offsetting lost vehicle production caused by a nationwide trucker strike in June.
“After nearly two years of chip shortages, automakers, including Hyundai, are getting enough chips to produce at nearly full capacity,” said Lee Jae-il, an analyst at Eugene Investment & Securities.
Shares in Hyundai Motor, which together with affiliate Kia Corp is among the world’s top 5 automakers by sales, were trading up 2.1 per cent as of 0440 GMT, compared with 0.7 per cent rise in the broader market KOSPI.