South Korea’s largest automaker, however, posted a net profit increase of 10.4%, to Won 1,036.8 billion, in the first six months of the year from Won 939.6 billion a year earlier. Sales declined 18.5% to Won 14.1 trillion from Won 17.3 trillion.
As a result operating profit fell 31% to Won 811 billion since exports from domestic Korean plants declined from a year earlier, and the company increased marketing expenses to “raise brand awareness and enhance overseas dealers.”
Marketing expenses basically more than doubled from 2.8% of revenue to 6% in the period.
The marketing gambit, though costly, showed some results. Hyundai Motor reached 5% global market share in the first half of this year for the first time ever, amid an estimated 15% decline in global automobile demand, compared to a year earlier. This result was achieved by expanded share in developed countries including U.S., China and in Europe, as the automaker boosted expanded marketing activities in local markets.