Hyundai Q1 profit triples, warns on chip shortage
Hyundai posted a first-quarter profit that nearly tripled to its highest in four years on Thursday.
The carmaker was unscathed by the health crisis as people in its home market and the U.S. snapped up its high-margin sports-utility vehicles and premium Genesis cars.
Net profit surged 187% to $1.16 billion.
While revenue rose 8.2%.
But there were warnings.
Hyundai said it would have to adjust production again in May because of a chip shortage.
Unlike its rivals, the South Korean automaker staved off production halts in the first quarter, thanks to a healthy chip inventory.
But the shortage, exacerbated by factors including a fire at a chip factory in Japan and storms in Texas, is now catching up with it.
Hyundai, which together with affiliate Kia is among the world's top 10 automakers by sales,
has temporarily paused production three times since the beginning of this month and saved chips for its most popular models.
The firm has also lagged its rivals in the electric vehicle race.
But it added on Thursday that it was developing solid-state batteries
and plans to mass produce EVs using them in 2030.