Some recent market reports have been doing the rounds that Hyundai Motor Company has made its lowest annual profit in the last 5 years. This has happened as a result of the automaker failing to anticipate the growing demand for Sports utility vehicles, which ultimately led the sales to drop significantly.
The South Korean automobile giant has claimed that it earned 6.51 Trillion Won in the year 2015 that is 15% less from 2014's net profit of 7.6 Trillion Won. As far as the final quarter profit is concerned in 2015 it was 1.53 Trillion, which is 8% less than last year's figure of 1.66 Trillion Won.
The demand for passenger cars has gone down considerably in the Chinese market and the automobile brand has not introduced any new SUV there. Last year, the sales of SUVs accounted to 21%, while for the passenger car segment, it was around three quarters of the total annual sales. However in October, post the sale of revamped Tucson model, the monthly sales turned positive.
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In the fourth quarter of 2015, the sales boosted to 5% thereby reaching 24.76 Trillion Won, whereas the profits saw a decrease of 20%, reaching to 1.52 Trillion Won. This Year, Hyundai is planning to sell 5.01 Million Vehicles. If we talk about India, the company has witnessed favorable amount of sale for the Creta as well as the updated version of Elite i20. But, there is a lot of difference in the purchasing habits as well as preference in various countries. The performance of any carmaker can't be determined from the sales of one country alone.
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