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Hyundai Motor, South Korea’s biggest automaker, recorded an operating loss in the third quarter due to an engine-related provision cost, the company said Monday.
Hyundai’s operating loss reached 313.8 billion won (278.1 million U.S. dollars) in the July-September quarter, missing market expectations of about 1 trillion won.
The net loss amounted to 188.8 billion won in the September quarter.
Hyundai attributed the loss to engine-related provision expenses as it took preemptive measures to ensure customer safety and cover any possible future increase in quality-related expenses.
Excluding the provision cost, the business performance exceeded market expectations, the company noted.
Revenue grew 2.3 percent from a year earlier to 27.58 trillion won in the third quarter.
The revenue growth was ascribed to an enhanced product mix that came from the robust sale of sport utility vehicle (SUV) models and Genesis luxury brand models, which offset an adverse economic environment and an unfavorable exchange rate.
Hyundai sold 997,842 vehicles around the world in the third quarter, down 9.6 percent from a year earlier.
Total sales in markets other than South Korea dropped 15 percent to 798,791 units amid the continued effect from the COVID-19 pandemic, but sales in South Korea advanced 21.9 percent to 199,051 units owing to newly launched models such as Genesis GV80 SUV and G80 sedan.
Online Reporter