Hyundai Motor Company registers 8% revenue growth in Q1 CY24, hybrid sales climb 17%

South Korea-headquartered Hyundai Motor Company (HMC) today announced its business results for the first quarter – Q1 of CY2024 – with the carmaker registering a 7.6 percent year-on-year (YoY) growth in revenues to KRW 40.66 trillion or Rs 2.47 lakh crore – recording its highest-ever Q1 revenue.

During the January-March 2024 period, the company’s operating profit declined 2.3 percent YoY to KRW 3.56 trillion (Rs 21,650 crore) with operating profit margin of 8.7 percent. Its net profit (including non-controlling interest) was down 1.3 percent to KRW 3.38 trillion (Rs 20,555 crore).

In Q1 CY24, HMC clocked cumulative global sales of 1,006,767 units, registering a 1.5 percent YoY decline (Q1 CY23: 1,021,827 units). While sales in Korea declined by 16.3 percent to 159,967 units (Q1 CY23: 191,047 units), its performance in markets outside of Korea was up by 1.9 percent to 846,800 units (Q1 CY23: 830,780 units), backed by robust volumes achieved particularly in North America and India.

India’s contribution to HMC’s global volumes has been consistently growing, with Hyundai Motor India contributing 614,721 units or approximately 15 percent to the carmaker’s worldwide volumes pegged at an estimated 4.18 million units in FY2024 – April 2023 to March 2024 period. In fact, India, with its strong growth potential, is increasingly gaining more prominence in Hyundai’s global plans, with the company’s chairman visiting the country twice in less than a year.

The company attributes the notable decrease in Korea volumes to the temporary suspension of HMC’s Asan plant in Korea, owing to the ongoing revamp activities of its facilities for electric vehicle production.

Strong hybrid sales, focus on electrification

Hyundai Motor Company also recorded robust hybrid sales - nearly 98,000 units - up 16.6 percent from a year ago, with total electrified volumes being pegged at 153,519 units in Q1 CY24. Hyundai’s electrified model range includes hybrids, plug-in hybrids, battery electric vehicles and fuel cell electric vehicles, and the volumes at 153,519 units declined 4.8 percent compared to the same period last year.

The company has reaffirmed its focus on electrification wherein it targets to continue strengthening its global electrification leadership by selling hybrids and introducing new Ioniq EV models.

HMC also announced its quarterly dividend of KRW 2,000 for Q1 CY24, as per the announcement of the dividend payout ratio, which is 25 percent or higher of its consolidated net profit attributable to controlling interest.

The carmaker plans to secure its market share and robust profitability, higher than 8 percent of operating profit margin, through increased sales, optimised production and an enhanced product mix with more SUVs and luxury models. It aims to do so despite persistent external factors, such as expanding inflation, fluctuating interest rates and geopolitical issues.

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