Hyundai Q2 profit jumps 59% as chips crunch eases

Jessica Thompson

SEOUL — Hyundai Motor posted a rise of 59 percent 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 SUVs.

Net profit climbed to 2.8 trillion won ($2.13 billion) for the April-June period from 1.8 trillion won a year earlier.

“A robust sales mix of SUV and Genesis luxury models, reduced incentives from a lower level of inventory, and a favorable foreign exchange environment helped lift revenue in the second quarter, despite the slowdown in sales volume amid an adverse economic environment,” Hyundai said in a statement on Thursday.

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.

Leave a Reply

Your email address will not be published. Required fields are marked *