AutoBeta(AutoBeta.net)10/26 Report--

Hyundai Motor South Korea said on Monday that its third-quarter net loss was well below market expectations as engine quality problems and recall-related costs offset otherwise strong earnings. According to the financial results released on the 26th, revenue in the third quarter of 2020 rose 2.3 percent year-on-year to 27.58 trillion won (163.4 billion yuan), but the operating loss reached 313.8 billion yuan (1.858 billion yuan). The net loss reached 188.8 billion won (1.118 billion yuan).

Hyundai said that overall business performance continued to improve in the third quarter, the company will continue to improve profitability, COVID-19 's continued uncertainty, will launch a strong lineup of new models.

Although sales in major countries gradually rebounded after the relaxation of epidemic prevention measures, under the influence of the epidemic, Hyundai's global sales continued to show a negative growth trend compared with the same period last year. Hyundai's global sales fell 9.6 per cent to 997842 vehicles in the third quarter from a year earlier, with sales in South Korea rising 21.9 per cent to 199051 vehicles in the third quarter and 15 per cent to 798791 in overseas markets.

Affected by the epidemic, Hyundai has also encountered great challenges this year. As of the third quarter, Hyundai had global sales of 2605189 vehicles, revenue of 74.75 trillion won, operating profit of 1.14 trillion won and net profit of 741.2 billion won.

The Chinese market is one of the most important automobile markets of Hyundai, and its performance income in the domestic market has picked up somewhat, but it is still not optimistic. Beijing Hyundai ranks last in the top 15 automakers in terms of sales, and cumulative sales in the first three quarters fell 31.6% year-on-year to 350395 vehicles, the highest in the top 15, according to the Federation of passengers.

At present, Hyundai Motor is speeding up the brand and product layout. Hyundai plans to launch nine new models in the Chinese market in 2021. According to Hyundai, in terms of cars, Hyundai will launch new Mingtu and Festa after launching the new Sonata and Elantra in China in July; in terms of SUV, Hyundai Shengda and imported Parristi have been listed, followed by new ix35 and new Tusheng; and in terms of MPV, Hyundai will launch CUSTO models.

I have to say that the sense of existence of Korean cars in the domestic market is getting weaker and weaker. According to the latest "market share of passenger cars in different departments" released by the China Automobile Association, the market share of Korean brands in China fell to 3.6% in the first three quarters, second only to 0.3% of French brands. Under the background of the continuous sinking of the second-tier luxury brand market and the continuous upward development of independent brands, modern brands have no premium ability at home.

Beijing Hyundai's sales have declined for three consecutive years since 2016. Beijing Hyundai has adopted a low-price sales strategy in order to stabilize sales, and the main models are basically low-priced models of 100000 yuan. This strategy has led to the gradual cheapness of modern brands. Some people in the industry said that Beijing Hyundai urgently needs to build its brand. What Hyundai lacks is not products, but clear brand positioning, but it is not easy to raise the brand premium. For Hyundai, it is still a difficult process to repair the brand loss and market share lost in the past two years.

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