Hyundai Motor Company (KRX: 005380) reached its lowest annual net income in seven years in FY17 with KR₩4.54 trillion (US$4.3 billion) since FY09 when it amounted to US$3.8 billion. This is also the fifth year in a row in which Hyundai’s net income is on the low side since it peaked at US$8.5 billion in 2012.

That being said, the Korean automaker did report year-on-year growth in net income from quarter to quarter of 37.1 percent to KR₩129 trillion (US$1.21 billion) in 4Q17 from KR₩939 billion (US$882.66 million) in 4Q16. Comparing 4Q16 and 4Q17, income also jumped 20.5 percent beating the 2016 net income of US$1 billion.

Between 2016 and 2017, Hyundai’s annual revenue grew 2.9 percent to KR₩96.37 trillion (US$ 91.07 billion) from KR₩93.65 trillion (US$90.85 in 2016). Hyundai’s automotive division was the main source for that revenue with 77.8 percent of the total. The company’s finance division contributed with an additional 16 percent and other smaller divisions with 7 percent of the annual revenue. Hyundai points to solid sales in Korea and in emerging markets as the main driver of revenue growth in the automotive division despite flat sales in the US. The company also underlines expansion of financial products on new models as the reason behind revenue growth in its finance division.

Excluding China, Hyundai grew its sales globally by 1.6 percent between 2016 and 2017 in terms of units. This, however, did not counter China’s lower results – which went to 785,000 in 2017 (a 31.3 percent drop in units sold) from 1.1 million units in 2016 – leading the company to overall global sales 6.4 percent lower in 2017 (4.5 million vehicles) compared to the 4.8 million units sold in the previous year.

Hyundai’s 2018 business plan projects that sales will grow 1.8 percent in Korea to 701,000 vehicles in 2018 from 689,000 units in 2017. Outside its domestic market, the automaker’s sales projection stretches to 3.97 million vehicles in 2018 from 3.82 million vehicles in 2017, which would mean a 4.1 percent increase. The company expects China to be the main engine behind this sales growth with a projection of a 14.6 percent increase in that market.

 

The data used in this article was sourced from Hyundai Motor Company. If you want to learn more about Hyundai’s presence in Mexico, check out our feature analysis in Mexico Automotive Review 2017

Don’t forget to follow us on twitter at @mexautomotive and @mexautomotriz for the latest industry news.

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