South Korea`s Hyundai Motor Co slightly missed analysts` profit estimates as the global chip crisis drove down vehicle shipments and it said it expects it will take a long time to get back to normal chip supplies.

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Hyundai, which together with affiliate Kia Corp is among the world`s top 10 automakers by sales, reported a net profit of 1.3 trillion won ($1.10 billion) for the July-September quarter.

See Zee Business Live TV Streaming Below:

https://www.reuters.com/article/chips-shortage-explainer-int-idUSKBN2BN30J, triggered partly by surging demand for laptops and consumer electronics during the pandemic, has shuttered auto production lines globally and forced automakers to slash shipment forecasts.

Hyundai previously said its on-year sales growth might slow in the second half of 2021 due to challenging business conditions, including the unstable supply of automotive chips.

Hyundai had turned in its best quarterly profit in about six years in the April-June quarter thanks to its conservative supply chain management that helped it to navigate the shortage better than other automakers.

But the prolonged crisis forced Hyundai to suspend production during the third quarter.

This month, Hyundai`s global chief operating officer Jose Munoz said the automaker wanted to develop its own chips https://www.reuters.com/technology/hyundai-motor-says-it-wants-develop-c... to reduce reliance on others.

Shares of Hyundai Motor were trading up 0.7% after the firm published its earnings results, compared with a 0.8% rise in the broader market KOSPI.