Hyundai Motors Co. outshined its global rivals by reporting a record quarterly profit on Thursday, as a weak won helped overseas sales and government incentives boosted domestic demand for cars.
Net income for the April-June quarter soared 48 percent to 811.9 billion won, or $650 million, South Korea’s largest car maker said in a statement. The figure compared with 546.9 billion won in net profit a year earlier and a 225 billion won profit in the first quarter of this year, New York Times reports.
At the same time, government stimulus programs in South Korea, China, Europe and the U.S. aimed at spurring auto demand lifted Hyundai’s global unit sales by 7.3 percent last quarter, the automaker said. The carmaker boosted domestic sales 16 percent in the period helped by a 30 percent cut in the sales tax and raised sales goal in China for second time this year , Bloomberg reports.
Meanwhile, Hyundai, like other automakers, has been hit by falling demand amid the global economic downturn. The Ulsan, South Korea-based company, however, has used the opportunity to introduce new models and gain market share.
Hyundai said it grabbed 5 percent global market share for the first time despite what it said was a 15 percent decline in demand for autos worldwide during the first half of 2009.
The company's performance was strong in China and India, where Hyundai has built factories to meet increasing vehicle demand in the two fast growing economies ,The Associated Press reports.