Hyundai Motors’ 2015 Profits Lowest In 5 Years

South Korea automaker, Hyundai Motors Co, saw its annual profits reach its lowest levels in 5 years following 8 consecutive financial quarters of decline.

Fourth quarter net profit for the Hyundai dropped 2% to 1.6 trillion Won (US$ 1.4 billion) while full-year results saw a 15% decrease in net profit to 6.4 trillion Won (US$ 5.4 billion) despite a 3% rise in revenue to nearly 92 trillion Won (US$ 76.8 billion) as Hyundai spent on promotional discounts to US car buyers as sales in China remained soft. USA and China are Hyundai’s biggest markets.

Global sales volume for Hyundai in 2015 however, saw a slight increase to 4.8 million vehicles, despite a 7% decrease in China sales which was mainly attributed to the late introduction in 2015 of the Tucson SUV, which helped stem further decline later in the year.

Sales in other emerging markets like Brazil and Russia slowed due to weak commodity prices which put pressure on the economy and currency. In contrast, India has become Hyundai’s 4th largest market after China, USA and South Korea, with an increase in sales to 460,000 units (up 13%). Hyundai is second in India in terms of market share.

Hyundai said it is targeting 5.1 million vehicles sales globally this year, a 1% increase over 2015, amid uncertain market conditions.