Seoul

Hyundai Motor reported on Thursday that its net profit for the first quarter slipped by 1.3 per cent year-on-year due to a temporary shutdown of one of its Korean manufacturing plants, resulting in a decline in sales.

According to a regulatory filing, the company’s net profit for the January-March period stood at 3.37 trillion won ($2.5 billion) on a consolidated basis, compared to 3.41 trillion won a year ago. Operating profit decreased by 2.3 percent to 3.55 trillion won, while sales increased by 7.6 per cent to a record 40.65 trillion won.

Hyundai Motor sold 1,006,767 vehicles globally in the first quarter of 2024, marking a 1.5 per cent decline from the same period last year. However, the company’s quarterly performance surpassed market expectations, with analysts estimating a net profit of 3.03 trillion won, according to a survey by a financial data firm.

The slowdown in sales was attributed to the temporary shutdown of production lines at Hyundai’s Asan plant in South Korea for preparations related to the launch of new cars. Sales of Hyundai’s eco-friendly vehicles dropped by 4.8 per cent to 153,519 units, reflecting a recent slowdown in global electric vehicle (EV) demand.

Despite ongoing uncertainties in the business environment, including high-interest rates, geopolitical risks, and exchange rate volatility, Hyundai maintained a stable profitability of over 8 percent, driven by sustained sales growth in major overseas markets, as stated by a company official.