Gap Widens between Toyota and Hyundai-Kia

SEOUL, KOREA - The gap between Toyota and Korea’s two major car makers, Hyundai Motor and Kia Motors, widened further in the first half of this year as the Japanese auto maker has sped up on the back of the weak yen, while the Korean rivals were hit hard by the strong won.

Toyota announced on August 5 that it posted sales of 129.9 trillion won for the first half of this year, up 7.1 percent year on year, with its operating profit estimated at 11.32 trillion won.

In particular, it achieved record-high operating profit during the April-June period of this year when its operating profit amounted to 6.95 trillion won, renewing the record in seven years after 2007.

In contrast, the combined sales of Hyundai Motor and Kia Motors fell 0.5 percent to 68.38 trillion won in the first half of this year, with their operating profit falling 9.4 percent to 5.53 trillion won.

Key factors behind the decline in both sales and profits include the unfavorable foreign exchange rate movements. A Hyundai Motor official said, “The won-dollar exchange rate fell 5.1 percent in the first half of this year, dealing a blow to our profitability.”