Hyundai, first quarter profit growth | FormulaPassion.it

The first quarter of 2022 closes extremely positively for Hyundai. In fact, the Korean carmaker closed the first three months of the year with a 19% increase in profit, thus exceeding even expectations which did foresee growth, but not to this extent. Rising raw material costs and declining vehicle sales caused by the prolonged global chip shortage have certainly impacted Hyundai’s business, but the company has been good at countering all the difficulties of the business blow for blow. case and managed to get out with her head held high.

Chapter salesGlobal car registrations of the Korean brand fell by nearly 10% in the first quarter. And it may not be over here: Hyundai has warned it expects further supply chain disruptions due to the lockdown applied in several Chinese cities, which means that the sales situation could remain negative in the coming months. The Korean carmaker has so far tried to compensate for this decrease in deliveries with a weighted price increasea tool that could be used again by Hyundai to address rising raw material costs and logistics expenses, such as procurement of microchips, semiconductors and other critical components.

As pointed out by Autonews, it now remains to understand what the impact of the war between Russia and Ukraine: Hyundai, which suspended operations at its St. Petersburg plant on March 1 and is only selling remaining inventory in the country, is seeking to minimize costs by cutting incentives and marketing expenses. “We are considering the possibility of delay the implementation of planned investments this year and the launch of new models in Russia to improve the profitability of our operations in the country “Hyundai executive vice president Seo Gang Hyun said.