Hyundai witnesses $2.2 billion profit in Q2

Recent reports suggest that the world 5th biggest car maker Hyundai Motors has registered a whopping growth of 37 percent in the net profit in the second quarter of the year. The main profit of the company started from March 2011 as the biggest rivals from Japan got affected due the earthquake in March this year. The reports reveal that the Hyundai along with Kia Motors has made a net profit of 2.3 trillion ($ 2.2 billion) in the second quarter of the year i.e. from April to June. This was 1.3 trillion won in the first quarter of the year.

The company states that they are going to report their earnings on consolidated basis to reflect out the earnings of its competitors, which includes all its financial operations under the new accounting rules that were recently framed.

Hyundai also reported that its market share in the United States in the second quarter of 2011 was 5.5% which is much more than 4.7% last year in the same time period. The main reason behind this rise was due to the two cars Hyundai Sonata and Hyundai Elantra which got wonderful sales figure as all its Japanese rivals were suffering from the disruptions caused due to the earthquake. The company has recently raised the sales target for U.S. by 6% to 624,000 cars for the current fiscal.

The company is also doing a great business in the Indian car market, the company has seen a rise of 15-17% this year till date. Seeing this growth in the Indian car market, the South-Korean based company has decided to invest an amount of Rs. 4 billion for its diesel plant in the country.