Hyundai has laid out a turnaround plan that will see the company place higher hopes on its new SUV line-up, after the automaker posted its biggest quarterly profit in seven years, Reuters reports.
Strong sales in the US and Korea helped offset a sales slump in China, where a slowing economy, trade war with the US, and lack of competitive models forced Hyundai to suspend production at its oldest factory earlier this year.
To keep up with the encouraging momentum in the US, also its biggest market, Hyundai will focus on boosting its SUV portfolio, which currently occupy 51% of its model range. By 2023, Hyundai targets to increase that proportion to 67%, which means more SUVs will be introduced in the next few years.
Meritz Securities analyst Kim Joon-sung said: “It was a surprise when Hyundai revealed an aggressive US turnaround plan, but I don’t see any problem in it meeting its annual sales target there.”
Hyundai’s revival is being led by heir-apparent Euisun Chung following six years of profit decline. The executive vice chairman is widely considered to be seeking investor support to revisit an ownership restructuring plan, and he will soon take over the chairman role from his 81-year-old father.