Hyundai Motor posts record Q2 profit on strong U.S. sales, to boost hybrid lineups

Hyundai Motor reported record quarterly profit and revenue on Thursday on strong sales of high-margin cars and said it would expand hybrid lineups to brace for possible changes in U.S. electric vehicle policies following the election.

Its forecast-beating performance helped ease mounting investor concerns over slowing consumer demand for cars that have battered some of its rivals including Ford, Japan's Nissan Motor and Tesla in the April-June quarter.

But Hyundai also warned of an uncertain outlook due to intensifying price competition as inflation and high interest rates squeeze consumers.

"As consumer demand for autos is weakening, we expect there will be more competition and the amount of incentives is also likely to increase... creating a tougher business outlook," the world's No.3 automaker by sales along with affiliate Kia Corp said in an earnings release.

Hyundai reported a net profit of 4 trillion won ($2.9 billion) for the April-June period, up 23% from a year earlier and easily beating the 3.4 trillion won average of 21 analyst estimates compiled by LSEG SmartEstimate.

The net profit was its highest quarterly since the previous record high set in the Q2 2022.

Hyundai outperformed some of its rivals by boosting sales of premium SUV models and hybrid vehicles in the U.S., a move that also helped it offset a prolonged sales weakness in the domestic market.

Domestic vehicle sales in South Korea, Hyundai's second-biggest market, slumped 10% in the second quarter, extending from a 16% drop in the previous quarter, as consumers continue to grapple with surging inflation and a weak economy.

Hyundai said it would expand hybrid lineups as demand for EVs eases globally and uncertainty mounts over U.S. EV policies.

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