SEOUL, KOREA - Hyundai Motor and Kia Motors reported improved first-quarter results compared to a year ago, overcoming the risk stemming from the negative movement of foreign exchange rates. Their combined first-quarter sales amounted to 33.57 trillion won, with an operating profit of 2.67 trillion won.
Compared to a year ago, sales rose 3.5 percent and operating profits 3.9 percent. For the January-March period of this year, their combined car sales reached 1,999,337 units, up 6.7 percent year on year.
This year’s business environment surrounding Hyundai Motor and Kia Motors is not much favorable. The continued downward trend of the won-dollar exchange rate weakened their price competitiveness overseas and profitability. In contrast, their Japanese rivals are riding high on the weak yen.
Despite such unfavorable foreign exchange situation, Hyundai Motor achieved a 9.0-percent operating profit-to-sales ratio, up 0.3 percentage point from a year ago. Kia Motors made active use of its improved brand image, shedding the image of a cheap car maker. Kia Motors’ average unit sales price rose 7.4 percent in the first quarter.