Hyundai Motor Co.'s first-half operating margin was 5.4 percent, down 1.2 percentage points from a year earlier. Kia Motors Inc. also posted a margin of 3 percent, down 2.2 percentage points on-year (Source: english.yonhapnews.co.kr) Hanoi (VNA) - Carmakers of the Republic ofKorea (RoK) posted lackluster profitability over the first half of 2017,falling far behind major overseas rivals, the Yonhap news agency reported.
Top carmaker Hyundai MotorCo.'s first-half operating margin was 5.4 percent, down 1.2 percentage pointsfrom a year earlier. Its sister company Kia Motors Inc. also posted a margin of3 percent, down 2.2 percentage points on-year.
In terms of the operating margin, Hyundai Motor moved down four notches overthe cited period to be ranked at the ninth place among 12 major carmakers in asurvey by Hana Financial Investment.
Kia Motors was placed at the bottom of the list, down from the eighth placeposted last year.
Industry watchers said the falling profits are attributable to increasedmarketing expenditures and the latest diplomatic tension between Seoul andBeijing, which led to a decrease in their sales in Asia's No. 1 economy.
To revitalise growth, Hyundai and Kia need to expand research and developmentto reduce production costs and increase competitiveness, they added.
Germany-based BMW AG posted the highest operating margin in the first half of11.2 percent, followed by Daimler AG and US-based General Motors with 9.6percent and 8 percent, respectively. Volkswagen posted a margin of 7.7 percent.-VNA
Top carmaker Hyundai MotorCo.'s first-half operating margin was 5.4 percent, down 1.2 percentage pointsfrom a year earlier. Its sister company Kia Motors Inc. also posted a margin of3 percent, down 2.2 percentage points on-year.
In terms of the operating margin, Hyundai Motor moved down four notches overthe cited period to be ranked at the ninth place among 12 major carmakers in asurvey by Hana Financial Investment.
Kia Motors was placed at the bottom of the list, down from the eighth placeposted last year.
Industry watchers said the falling profits are attributable to increasedmarketing expenditures and the latest diplomatic tension between Seoul andBeijing, which led to a decrease in their sales in Asia's No. 1 economy.
To revitalise growth, Hyundai and Kia need to expand research and developmentto reduce production costs and increase competitiveness, they added.
Germany-based BMW AG posted the highest operating margin in the first half of11.2 percent, followed by Daimler AG and US-based General Motors with 9.6percent and 8 percent, respectively. Volkswagen posted a margin of 7.7 percent.-VNA
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