April 20, 2024

• 

[THE INVESTOR] Hyundai Motor on April 26 said it plans to roll out new cars -- including the first electric vehicle -- in China, to revive sales amid heightened political tension between Seoul and Beijing over the deployment of US-led THAAD missile system.

“Sales in China increased 9 percent on-year up to February, but beginning from March, they have decreased,” Koo Za-yong, Hyundai vice president in charge of investor relations, said during a conference call after the company’s first quarter earnings report. 

Hyundai Motor released China-only SUV ix35 during the Shanghai Motor Show on April 19.

“The sales drop is not due to internal factors, but the result of the anti-Korean sentiment in China and some rivals launching marketing campaigns to exploit the sentiment.”

“We are planning to release three new cars, as well as the first electric car in China to overcome the current situation,” Koo said. “We will also expand local corporate social responsibility activities to build Chinese customers’ trust back.”

Hyundai sold 206,000 units in the first three months this year in the world’s largest auto market, down 14.4 percent from a year earlier. Beijing Hyundai Motor, Hyundai’s Chinese joint venture, posted 3.16 trillion won (US$1.81 billion) in sales, a decline of 27.6 percent on-year.

The sudden sales decline came amid intensifying anti-Korean sentiment after Korean government decided to deploy THAAD. Beijing remains opposed to the missile system, calling it a risk to its security.

During the conference call on April 26, Hyundai said its first-quarter operating profit fell 6.8 percent to 1.25 trillion won on-year, mainly hit by a sales slump in its all-important Chinese market.

Revenue came to 23.36 trillion won, up 4.5 percent from a year-earlier, while net profit stood at 1.4 trillion won in the January-March period, down 20.5 percent on-year.

The automaker sold 1.08 million units in the first quarter.

By Ahn Sung-mi (sahn@heraldcorp.com)