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| Hyundai Motor Group Executive Vice Chairman Chung Euisun speaks during a press conference at the Consumer Electronics Show in Las Vegas, Jan. 7. Yonhap |
By Nam Hyun-woo
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| Hyundai Motor 2019 earnings |
In a regulatory filing to the Korea Exchange (KRX), the country's main bourse operator, Hyundai Motor said it posted 105.79 trillion won in sales last year, up 9.3 percent from 96.8 trillion won a year earlier. Its 2019 operating profit reached 3.69 trillion won, up 52 percent from 2.42 trillion won during the same period.
"Despite the large one-off cost in the third quarter of last year, enhanced sales mix and less spending on incentives have significantly helped the automaker see a whopping increase both in terms of sales and profits," Hyundai Motor said in a statement. "Also, the weaker won also helped the company log a 52 percent year-on-year growth in operating profit." Weaker won against the greenback helps South Korean export-driven firms gain an advantage in the price of their products in key international markets over their chief Japanese rivals.
Hyundai Motor attributed the rebound to the robust sales of high value added vehicles such as the Palisade large SUV and luxury brand Genesis cars. Last year, Hyundai Motor sold 52,299 Palisades in Korea and 55,215 in overseas markets.
This resulted in the company's sales growing despite a 3.6 percent decline in the number of vehicles it delivered last year, Hyundai Motor said. The company sold 4,425,528 vehicles last year.
In a conference call to investors upon news of its annual earnings results, its Genesis brand senior executive Lee Yong-ho said the automaker plans to sell 116,000 Genesis-branded sedans and SUVs, this year, as Hyundai expects the demand for premium sedans and eco-friendly vehicles will remain solid in its key international markets.
"Hyundai has plans to expand the lineup of the Genesis brand and release eco-friendly vehicles. Regarding the specifics, the successful launch of the GV80 demonstrates Hyundai's strategy for the brand expansion. We have plans to introduce the GV70 and electric vehicle models," Lee told investors during the call. "In India, we aim to bolster our presence as Hyundai will expand the sale of value-added SUVs. We will start selling Creta- and i20-branded vehicles, there as scheduled. Also, in Europe and China, which the Genesis brand considers as very important markets, we are looking for the right timing on the possible release of the Genesis brand."
The brand, separated in 2015, is an initiative of Hyundai Motor Group Executive Vice Chairman Chung Euisun aimed at revamping the image of the value-for-money automaker. The South Korean automaker also expects the Genesis brand vehicles to be a core part of a strengthened lineup that will also lead the brand's expansion in China and Europe, where it has a negligible presence.
During the fourth quarter alone, the company posted 27.87 trillion won in sales and 1.24 trillion won in operating profit, up 10.5 percent and 148.2 percent from a year earlier, respectively. "Due to the shrink in major markets, the year-on-year sales in the fourth quarter has declined," the company said. "However, with the sales momentum of the Palisade, the Grandeur and other SUV models, the profitability has been improved significantly."
Hyundai Motor's affiliate Kia Motors also unveiled its 2019 earnings on Wednesday. The company logged 58.15 trillion won in sales and 2.01 trillion won in operating profit, up 7.3 percent and 73.6 percent from a year earlier, respectively.
