Hyundai Motor Group recently shared its revenue report for the first quarter of the year. Accordingly, the company managed to become the second most profitable automaker in the world, leaving Volkswagen Group behind. So who is in first place?
Hyundai’s sales surpass Volkswagen
According to financial results released this week, Hyundai Motor posted an operating profit of $5.5 billion in the January-March period. This is ahead of Volkswagen’s profit of $4.9 billion in the same quarter. This puts the company in second place.
Hyundai Group has three automotive brands: Hyundai, Kia Motors and Genesis. The strong performance of all three brands led the company to surpass Volkswagen in quarterly operating profit. Toyota Motor, on the other hand, maintained its place at the top with an operating profit of 6.3 billion dollars.
Another area where Hyundai outperformed its German rival was its operating profit margin. The South Korean car giant’s profit margin in the first quarter of the year was 10.4 percent. Volkswagen’s margin remained around 6.1 percent. Apart from Hyundai, only Toyota was able to achieve a margin as high as 10 percent.
Analysts targeted the diversity of Hyundai’s car portfolio and the sales of high-end luxury vehicles offered under the Genesis brand. This paved the way for it to rival brands such as Volkswagen and Toyota. SUV models and hybrid vehicles have helped Hyundai grow in key markets.
Hyundai also unveiled its ambitious growth strategy at the 2024 Beijing International Automotive Show. At the center of this strategy is the all-electric IONIQ 5 N. This ambitious model stands out with its 650 horsepower and design. It will go on sale in China in the second half of this year.
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