SEOUL: Hyundai Motor Co reported a 47 percent rise in quarterly profit on Thursday and said earnings would continue to grow thanks to strong global demand for new models and as Japanese rivals struggle with the aftermath of the March 11 earthquake and tsunami.
The South Korean firm is less reliant on Japanese parts than other global car makers such as General Motors and is widely seen among the biggest beneficiaries of a prolonged slump in Japanese output this year following the quake.
Hyundai, the world's fifth-biggest carmaker along with affiliate Kia Motors , is expected to see earnings grow further in the second quarter on the back of higher market share and reduced incentives.
"Hyundai has been emerging as an alternative to Japanese cars, shaking off its image as a maker of cheap cars," said Lee Dong-jin, a fund manager at KTB Asset Management. "It's now seeing some benefits from increasing production at overseas plants while the world took a hit from the financial crisis."
After the results were announced, Hyundai shares rose more than 5 percent. The stock has risen 35 percent so far this year, hitting a succession of record highs and comfortably beating a 8 percent rise in KOSP.
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