Hyundai Motors registers staggering $7.22 billion profit in 2011, majorly due to rise in demand from India and America
South Korean car manufacturer, Hyundai Motors has registered an impressive growth rate for the year 2011. Hyundai Motors sales in 2011 grew by 14% while annual profit figures grew by 35.1%. Hyundai Motors profit for the year 2011 stood at $7.22 billion while their revenue from sales stood at $69.37 billion.
Hyundai Motors managed to register impressive growth figures in 2011 majorly due to an exponential rise in demand from car buyers in America and India. In India, Hyundai Motors is the second largest car manufacturer and the largest car exporter, while in America Hyundai ranks fourth after GM, Toyota and Ford. Globally Hyundai is ranked as the fifth largest car manufacturer, after GM, Volkswagen, Renault-Nissan, and Toyota.
Hyundai Motors in fact matched market estimates at a time when the global economy is on the verge of another recession. Mr Ahn Se-hwan, Auto Analyst, IBK Securities, said, “The industry had no doubt that Hyundai would have a good year. A lot of factors including the won-dollar exchange rate, and growing brand reputation in emerging markets worked in favor of the carmaker. Hyundai is achieving some cost cuts from integrating their production platforms. More vehicles will go through the streamlined version of their platforms in the future and further increase their performance.”
In 2011, Hyundai and its affiliate Kia Motors sold 4.05 million cars globally and now the South Korean car maker is aiming at selling a staggering 7 million cars this year. Mr Chung Mong-koo, Chairman, Hyundai Motors said, “In order to achieve the 7 million target, we have to keep up with fast-changing global trends by setting up an organized cooperation system for better communication among our production facilities and sales locations across the world.”
Hyundai is also working on a strategy to take on Europe’s largest car manufacturer, Volkswagen. Riding on the newly launched i40 and 3 door Velostar, Hyundai aims to increase their European sales by 25% by 2013. Their factories have started working on a third shift in order to increase production. According to Jessica Caldwell, Analyst, Edmunds.com, “Hyundai offers compelling design at an affordable price– a win-win for most consumers. Brand exposure has long been the problem for Hyundai, but that has certainly eased.” Mr Richard Sanders, MD, Drivethedeal.com adds, “People just seem to trust VW more. But that’s changing. There’s nothing wrong with Hyundai product anymore.”