Hyundai's net profit soared by 425% in the second quarter. Core deficiency is expected to ease in the second half of the year.

South Korea's Hyundai Motor announced its second-quarter results on July 22nd.

Hyundai delivered 1031349 vehicles worldwide in the second quarter of this year, up 46.5 per cent from the same period last year, according to the results. Of this total, sales in overseas markets outside South Korea rose 73.6 per cent year-on-year to 830667 vehicles, while domestic sales fell 11 per cent to 200682 vehicles.

Hyundai's second-quarter revenue also rose 38.7% year-on-year to 30.33 trillion won, thanks to sales growth. Operating profit rose 219.5 per cent to 1.89 trillion won from 590.3 billion won in the same period last year. The operating margin is 6.2%. Net profit, including non-controlling interest, rose to 1.98 trillion won from 377.3 billion won in the same period last year, up 425.5% from a year earlier, a six-year high.

Overall, sales of the SUV and Genisse luxury brands boosted Hyundai sales in the second quarter, while the continued recovery in the global pandemic spurred demand and reduced incentives to buy cars, all of which helped boost the company's revenue and profitability.

Looking forward to the second half of the year, Hyundai believes that due to the further spread of novel coronavirus, resulting in a poor business environment, coupled with unstable global semiconductor supply, raw material price fluctuations, adverse exchange rates and other factors, sales growth in the second half of this year is likely to slow down. However, the company will continue to actively address these problems.

With regard to the shortage of chips, Hyundai believes that the situation will gradually improve in the second half of this year. The company plans to increase parts inventory, ensure supply and strengthen cooperation with semiconductor companies based on one-year orders. In addition, Hyundai will actively expand local parts production, diversify the supply chain, carry out inventory management, and continue to look for alternative chip parts to prevent parts shortages.

In a difficult operating environment, Hyundai also plans to continue to expand its product portfolio such as SUV and luxury cars to improve profitability. Hyundai plans to build on its first all-electric vehicle, IONIQ 5, and the first all-electric vehicle under the Genisse brand, to continue to strive to become a leader in the electric era while dealing with global environmental regulations.