Labour strikes and declining demand in emerging markets has been blamed for a 30 per cent drop in net profit for Hyundai Motor in the fourth quarter of 2016.
Net profit fell to around £680 million from around £1.02 billion in the same quarter a year ago as the Korean brand recorded net profit for the year of Won5.7tn, down more than 12 per cent from 2015, the Financial Times reported.
Operating profit also fell back, dropping 32 per cent year-on-year to Won1tn in the quarter — the lowest quarterly earnings since 2010.
Announcing its results today, representatives of the brand cited production losses and currency fluctuations for the dips.
September saw the manufacturer’s South Korean labour union stage its first nationwide strike in 12 years in a dispute over wages.
Nearly 40% of the brand’s vehicles sold globally last year were built in South Korea, meaning production has been hit hard by the action.
UK president and chief executive Tony Whitehorn insisted that supply to UK dealers was unaffected by the action.
In 2016 Hyundai realised a 4.88% rise in registrations, from 88,117 to 92,419, according to the SMMT.
The figure saw the brand’s market share rise from 3.35% to 3.43% in a record market.