Hyundai Motor Q2 net profit soars

Hyundai beat expectations to report its best quarterly profit in about six years on Thursday (July 22).

The South Korean automaker saw strong demand for its sports-utility vehicles and premium Genesis cars.

That drove it to a net profit of nearly $1.6 billion for April to June.

Analysts said the company also coped better than many other automakers with a global chip shortage.

They put that down to Hyundai's effective supply chain management.

Despite that, the automaker has felt the effects of the silicon shortage and separate component supply issues, particularly in its electric vehicle unit.

Back in April, Hyundai suspended production at a factory making its Ioniq 5 electric car due to those problems.

On Thursday, the company said it expects the chip shortage to ease later this year.

But it said sales growth might slow in the second half because of challenging business conditions.

Hyundai sees unpredictable raw material prices and an unstable supply of chips as a potential issue as the year progresses.

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