APD | Hyundai, Kia expects soaring profits in 2019

By APD writer Alice

South Korea's leading car makers Hyundai Motor Co. and Kia Motors Corp expected to have their profits improve in 2019, thanks to increased sales of multi-purpose sports cars (SUVs) and weak local currency.

According to brokers’ income forecasts, Hyundai Motor is expected to have a net profit and business profit in 2019 of 105% and 46% respectively compared to the previous year, reaching 3,400 billion won ($2.93 billion) and 3,500 billion won. Hyundai Motor's car sales were estimated at 104,900 billion won last year.

Meanwhile, Kia Motor estimates that its net profit and business profit in 2019 will increase by 64% and 69%, respectively, year on year, reaching 1,900 billion won and 2,000 billion won.

The two leading South Korean automakers plan to announce their 2019 business results next week.

The excellent business performance of Hyundai Motor and Kia Motor in the past year was thanks to strong sales of high-priced SUV models, such as Palisade and Telluride. Earlier, Hyundai said it had sold more than 50,000 Palisades in the domestic market in 2019, helping boost its car sales and profits.

Hyundai Motor and Kia Motor sold a total of 7.19 million cars worldwide last year, lower than the target of 7.55 million units. In 2020, the two largest automobile manufacturers of South Korea aim to sell 7.54 million cars by launching many new models in big markets.

(ASIA PACIFIC DAILY)