Hyundai Motor Q1 profit falls on poor China sales

Hyundai - along with its smaller affiliate Kia - forms the world's fifth largest automaking group.

Net profit for January to March amounted to 1.76tn won ($1.52bn), down 11.6% from a year ago, while operating profit also fell 15.5% to 1.34tn won.

A prolonged slump in global oil prices hurt growth by dampening demand in some emerging markets, the company said.

A weakening of local currencies in countries such as Russia and Brazil also blunted Hyundai's price competitiveness, it said.

Global car sales were down 6.4% from a year before at 1.1 million units.

Hyundai warned that uncertainties would persist for the rest of the year, with emerging and advanced economies both showing few signs of recovery.

To counter slowing sales, the firm said it would increase production of sports utility vehicles popular in emerging markets like China - its key export market that accounts for about 20% of total sales.

Hyundai sales in China fell 18.2% in the first quarter, even as the Chinese auto market - already the largest in the world - expanded.

Source: AFP