Hyundai Motor pips Volkswagen to become world’s 2nd-largest automaker

Seoul: Hyundai Motor Group has outperformed Volkswagen Group to become the world’s second-largest automaker in terms of operating profit, industry data showed on Thursday.

According to automotive industry data, Hyundai Motor Group achieved sales of 69.4 trillion won ($49.6 billion) and an operating profit of 6.5 trillion won during the third quarter.

For the period from January to September, the South Korean automaker’s cumulative sales reached 208.9 trillion won, while operating profit was recorded at 21.4 trillion won, reports Yonhap news agency.

In terms of operating profit alone, Hyundai Motor Group ranked second among global competitors after Toyota Group.

The Japanese automaker reported an operating profit of 1.15 trillion yen ($7.4 billion) for the third quarter. and an operating profit of 32.4 trillion won for the January-September period.

For the third quarter, Volkswagen Group has reported an operating profit of 4.3 trillion won. For the first nine-month period, Volkswagen’s operating profit stood at 19.36 trillion won.

With Volkswagen Group facing challenges in the Chinese market, many industry watchers see Hyundai Motor Group as being poised to secure the No. 2 position in terms of operating profit after Toyota Group for the entirety of 2024.

Hyundai Motor Group, however, is likely to take some time before surpassing Volkswagen Group in global sales volume.

From January to September this year, Hyundai Motor Group sold 5.4 million units worldwide, maintaining its position as the third-largest automaker, following Toyota Group at 7.18 million units and Volkswagen Group at 6.5 million units.

“Operating profit, in addition to sales volume, is a crucial performance indicator in the auto industry,” Kim Pil-soo, an automotive professor at Daelim University, said. “Hyundai Motor Group is performing well despite an overall decline in vehicle demand affected by the so-called EV chasm affecting the industry.”

–IANS