Exports add to Hyundai Motors' bottom line

Exports add to Hyundai Motors’ bottom line

South Korea's largest automaker, Hyundai Motor Co., expects a 19% rise in its fourth-quarter profit due to strong overseas sales. Fourth-quarter net income is projected to rise to Won 544.3 billion (approx. $531 million) from Won 459 billion in the same period the year previously. Hyundai officials explained that a surge in exports aided sales, which otherwise would have been hurt by sluggish domestic demand and the weakening US Dollar. Hyundai Motor and four other South Korean automakers last year placed increased importance on exports in an effort to maintain their earnings as the slump in domestic spending negatively impacted sales of consumer goods. Automobile exports accounted for 13% of South Korea's $254.2 billion overseas sales, the Korea Automobile Manufacturers Association (KAMA) said. Hyundai Motor posted record sales in the US and Europe last year. In addition, the company became the fastest-growing automobile assembler in China. Hyundai Motor sold 665'662 vehicles in the fourth quarter, up by 16% over 2003. The company's domestic sales dropped 2.2% to 146'307 units, whilst exports, including sales from plants in China, India and Turkey, surged 22% to 519'355 units. South Korea's 2004 consumer spending slowed as debt payments blocked spending on cars and other consumer products. South Korean domestic car sales reached 1.09 million units in 2004, down 17% over 2003. This is the lowest annual sales since 1998, informed KAMA. Exports on the other hand rose 31% to 2.4 million units. The government continues initiatives to spark the nation's consumer confidence. In December, consumer confidence fell to a four-year low. Accordingly, economic growth is expected to cool this year due to stagnant spending. In December the government extended tax rebates on cars for six months in an effort to jumpstart sales.