Hyundai India incurs losses for the first time
According to reports in the media, Hyundai Motor India suffered a loss last year – the first such occurrence in its 10-year existence – and continued to make a loss during the first quarter of CY 2009. According to HMIL, the losses are due to higher input costs and currency fluctuations, with the Indian Rupee dropping by 11.5% against the Korean Won during 2008.
Though Hyundai India‘s profits have not, supposedly, declined on the operating level, the company posted a loss on the non-operating level due to the weakening Indian Rupee. HMIL is said to have lost Rs 55.9 crore in India during 2008, when the Indian Rupee went down from 22.6 to 25.2 against the Korean Won.
This made it more expensive for HMIL to import components from Korea. However, analysts believe that the worst is over for HMIL and that the company will return to profitability during the second half of this year.
[Via: indiaautomotive]