Hyundai Motors see profit decline in 2016

Hyundai Motor Company, (HMC) South Korea’s largest automaker has recorded a decline its sales volume and operating profit in 2016. The auto maker attributed the result to high production cost caused by series of labour strikes and continued economic stagnancy in emerging markets.

For the year 2016  HMC’s global sales totalled 4,857,933 units (Korea: 656,526 / overseas: 4,201,407), down 2.1 percent year-on-year.

Despite year-on-year decrease in sales, the company’s sales revenue increased 1.8 percent to from a year earlier owing to sales increase of SUVs and Genesis models. Operating profit fell 18.3 percent to KRW 5.19 trillion and net profit showed a 12.1 percent decrease to KRW 5.72 trillion, for 2016.

In the fourth quarter alone, global sales totalled 1,380,024 units while sales revenue posted KRW 24.54 trillion with operating profit of KRW 1.02 trillion. Hyundai Motor forecasts the business environment to be ever more uncertain due to continued sluggish global economy and possibility of increase in protectionist trade policies.

Nevertheless, Hyundai Motor will continue its effort to focus on strengthening competitiveness and product quality in the global automotive market. To do so, Hyundai Motor will launch variety of new cars and boost sales of SUVs, Genesis models and eco-friendly models.

Also by continuously investing in R&D, Hyundai Motor will focus on three core future technologies Clean Mobility, Freedom in Mobility and Connected Mobility, to ensure future growth.

A company source said that HMC will continue its cooperation with suppliers and actively carry out more values to customers as it strives to build a more shareholder-friendly environment by increasing transparency and shareholder’s value.