agent Entrepreneur logo
MenuMENU
SearchSEARCH

Hyundai Sales Surpass Honda

April 29, 2011
3 min to read


Hyundai Motor Co., South Korea's largest carmaker, boosted quarterly profit 46 percent as it won sales from Japanese rivals, outpacing Honda Motor Co., whose production was cut by last month's record earthquake in Japan.


Hyundai increased net income to 1.88 trillion won ($1.75 billion) in the three months ended March 31 from a revised 1.28 trillion won a year earlier, the Seoul-based company said in a regulatory filing Thursday. The stock jumped 7.3 percent to the highest closing price since it began trading in 1975, reported The Detroit News.

Ad Loading...


"Chaos brings disorder, and that's when you see changes in ranks among leaders," said Lim Jeong Seok, head of equity at KDB Asset Management Co., which oversees the equivalent of $2 billion in Seoul. "The past financial crisis and the recent earthquake may be an opportunity for Hyundai to pass bigger rivals."


Hyundai increased global vehicle sales about 9 percent last quarter from a year earlier after adding new models including the Grandeur premium sedan in South Korea and the Accent small car in China.


The carmaker might extend sales gains as Toyota Motor Corp., Nissan Motor Co. and Honda curtail production after the March 11 earthquake.


Honda, Japan's third-largest carmaker, reported fourth-quarter profit that missed analysts' estimates. The Tokyo-based automaker's net income plunged 38 percent to 44.5 billion yen ($545 million) for the three months that ended March 31. Revenue fell 2.9 percent, while Hyundai's gained 21 percent in the same period.


Hyundai boosted vehicle sales in the January-March period to 919,000, outselling Honda, whose global deliveries fell 1.6 percent to 860,000, according to the companies. A year earlier, Honda outsold Hyundai 874,000 to 842,000.

Ad Loading...


Japanese carmakers are working to restore full operations after the magnitude-9 earthquake and tsunami damaged parts factories and power plants, causing shortages of components and electricity. Honda said earlier this week it expects its global output to return to normal levels by the end of the year.


"Even if production comes back, sales may not" in Japan, said Yuuki Sakurai, president of Fukoku Capital Management Inc. in Tokyo.


"May sales, June sales may be close to zero as the companies won't have much to sell."


Honda's sales drop in the fourth quarter was led by a 22 percent decline in Japan from a year earlier, when a government subsidy program for car purchases helped boost domestic sales. Deliveries rose 7.9 percent in North America to 356,000 vehicles and 0.4 percent in Asia, excluding Japan, to 238,000.


Honda's output in Japan plunged 63 percent from a year earlier to 34,754 vehicles in March, the carmaker said earlier this week.

Ad Loading...


The company's output of cars and parts in Japan will remain at 50 percent of regular capacity until the end of June.


"We are in a situation where our supply is short when demand for cars is increasing globally," Managing Director Fumihiko Ike told reporters in Tokyo.


Honda declined to provide a full-year earnings forecast, citing the impact of the natural disaster on production.


The earthquake cost Honda 45.7 billion yen ($559 million) in the year ended March 31, the company said.

More Industry

Group photo of men outside storefront.
Industryby Hannah MitchellMay 28, 2026

Pennsylvania Dealership Under New Retailers

The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.

Read More →
Hallway with lockered wiring and computer
Industryby Lauren LawrenceMay 28, 2026

Battery Storage Takes Priority Over EVs

U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.

Read More →
Gray-scale photo of a line of Mini cars in a dealership parking lot
Industryby Hannah MitchellMay 27, 2026

Auto Dealers Feel Better But Not Great

A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.

Read More →
Ad Loading...
Closeup photo of the front of a white car
Industryby Hannah MitchellMay 21, 2026

New-Vehicle Sales Picture Relative

A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.

Read More →
Nissan logo on front of building
Industryby Lauren LawrenceMay 21, 2026

Auto Group Acquires Third Nissan Rooftop

Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.

Read More →
Couple talking with auto salesman next to new car inside dealership
Industryby Hannah MitchellMay 20, 2026

April Less Affordable

Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.

Read More →
Ad Loading...
Wooden people figures of different colors in a row, similar to board game pieces
IndustryMay 20, 2026

Building an Extraordinary F&I Agency

Work to determine your specialized talent, because that fact will determine everything about your agency’s future.

Read More →
Ingredient card, policies and procedures, fixed operations, variable operations, data security, audit
Industryby Jim GantherMay 19, 2026

Recipe for Compliance

The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.

Read More →
Photo of new Chevrolet Bolt parked on a beach
Industryby Hannah MitchellMay 14, 2026

EVs Getting More Attractive

A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.

Read More →
Ad Loading...
Benchmark bar graph showing April 2026 EV Sales
Industryby Lauren LawrenceMay 14, 2026

EV Sales Drop in April Following Surge

North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.

Read More →