Posts Tagged auto market

Hyundai Quarterly Profit Dips 10%

The Hyundai Motor Company said that net profit declined for a fifth straight quarter as sales plummeted because of labor strikes and intense competition in China. Hyundai, a leading Korean automaker, said last Wednesday that net profit in the first quarter that ended March 31 had fallen by 10.2 percent to 307.4 billion won or $329.22 million, down from 342.39 billion won a year earlier, the company said in a statement.

Last year’s first-quarter figure was revised up from an initial 318.83 billion won due to changes in South Korean accounting regulations, said Hyundai spokesman Jake Jang. Quarterly sales declined 2.6 percent to 6.684 trillion won or $7.16 billion. The first quarter results for the world’s sixth-largest automaker was worse than anticipated. The average estimate of eleven analysts surveyed by the Dow Jones Newswires forecast that Hyundai would report a net profit of 392.70 billion won or $421 million.

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Global Auto Trends Heading Your Way

Until recently, the U.S. auto market was insulated from what took place in much of the rest of the world. Passenger vehicles built in North America, particularly in Canada and the United States, were often different from what car manufacturers built in Europe, Asia, South America and elsewhere.

Auto Trends

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Toyota Motor Company Developing Low Cost Car

As far as automakers are concerned, the three most important emerging markets are China, Brazil and India. Many of the world’s largest automakers have started to focus their expansion efforts on these three countries and for good reason. China has helped Audi expand its sales growth the most, and the company has recently overtaken Mercedes-Benz in sales this year. Most of this is thanks to its long time successful operations in an exploding Chinese auto market.

Many automakers are making cars especially for their customers in these markets and the Toyota Motor Company is following suit. Toyota is currently in the developing stages of a new low cost car made specifically for customers in China, India and Brazil. The price of the car is set to cost around $11,000 making it more affordable for the masses. With such a low price car Toyota has the chance of gaining a massive amount of sales in these countries with some of the largest populations in the world.

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Chinese Auto Makers Grow Strong In Industry

No. This is not about those Ford L-Series parts and other automotive products in the market that have been rumored to be created by the Chinese labor force. Of course, that kind of rumor has brought about a huge wave of consciousness to the auto industry about buying just the right kind of parts and accessories and other products for their vehicles.

What this is about is the light that has been shone when a recent research was done. According to the mentioned study, Chinese auto makers are now getting greater and greater shares in the United States auto market. The study further reveals that Chinese auto makers are now enjoying an estimated US$18.3 billion in revenue last year. That is only for their light passenger vehicles.

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