SEOUL – South Korea’s largest automaker Hyundai Motor posted a 16 percent drop in its net profits during the July-September quarter to 939.2 billion won ($835 million) owing to falling sales in China.
The company posted a gross operating profit of 2.09 trillion won, 9.7 percent more than the 2016 Q3, the company said in a statement.
However, the operating profit of the company climbed 13 percent year-on-year to 1.07 trillion won, while revenue rose 9.6 percent to 24.2 trillion won.
Sales in China, the second largest market for Hyundai, decreased 26.6 percent year-on-year between July-September to 188,000 units owing to a boycott by China of South Korean products and companies since the beginning of the year in retaliation to the deployment of a United States-built anti-missile system, the Terminal High Altitude Area Defense, or THAAD.
Seoul and Washington have said the system is designed to intercept North Korean missiles, but Beijing has been opposing the deployment saying the THAAD radars could be used to spy on its military bases.
Hyundai’s Q3 car sales also declined in another of its key markets, the US, where it sold around 75,000 units; 26.5 percent less than the same period last year.