Strong demand in overseas market has enabled South Korea’s largest carmaker Hyuandai Motors to post record profits in the final three months of 2010.
The company reported a net profit of 1.4 trillion Won (£789 million, $1.3 billion) for the quarter ended in December, up 48 percent over the same period last year while sales were reported at 9.94 trillion Won, a gain of 3.1 percent.
While the company continued its superlative performance in the emerging markets, it benefitted from the demand recovery in the US market as well.
Analysts believe that the carmaker will continue the momentum in 2011 as well.
Kim Young-Min of IBK Asset Management said “The market overall sees Hyundai Motor continuing to do well this year on the back of strong sales and confidence from the past few years’ results”.
He said the market does not see a downside in profitability of the world’s fifth biggest carmaker because of the domestic currency gaining. “I don’t think the strong won will affect Hyundai Motor much, because it obviously didn’t have a great impact on its earnings last year either”, he added.
Hyundai has little presence in the green and electric vehicle market and has not invested in technology development either. However, analysts believe despite that, Hyundai will continue with its good performance.
Shim Hong-Seop, analyst at Kyobo-AXA Asset Management said: “Hyundai is still more focused on gasoline cars, but gasoline cars will dominate the auto industry for some time. It still has time to develop its own line of eco-friendly vehicles”.