Deutsche Motors Reports 490.5 Billion KRW in Q1 Sales, Up 5.2% YoY

Deutsche Motors, a comprehensive automobile platform specialist, announced that its consolidated financial statements for the first quarter of this year recorded sales of 490.5 billion KRW, a 5.2% increase compared to the same period last year. Operating profit and net income were 6.4 billion KRW and 1.4 billion KRW, respectively, representing decreases of 66.8% and 88.5%.

The company explained, “The overall profit decline reflects a temporary slump in new car sales at Deutsche Motors’ BMW sales division and initial costs incurred by its subsidiary Bayern Auto, which began covering the Audi brand this year,” adding, “Since March, the trend has been normalizing, which is encouraging.”

This year, Deutsche Motors expects the effects of its multi-brand strategy. While Deutsche Auto, responsible for Porsche, continues to achieve steady profits, British Auto, handling Jaguar Land Rover, has overcome previous sluggishness and succeeded in a turnaround in the first quarter. In the core BMW division, profitability is expected to improve significantly as the full change of the flagship 5 Series is scheduled for the second half of this year.

The differentiated online used car trading platform “Charancha” and the offline large used car trading complex Suwon Deutsche Auto World are also growing steadily. With the synergy from the acquisition of Sajik Autoland last year to secure the premium used car market in Busan and the Gyeongnam region, the used car division’s performance is expected to expand significantly.

Kwon Hyuk-min, CEO of Deutsche Motors, stated, “Although the first quarter showed weak performance, we continued quantitative growth and expect improvements from the second quarter based on various positive factors,” adding, “We will always keep in mind enhancing shareholder value, including implementing a stable dividend policy for shareholder returns.”

This content was produced with the assistance of AI translation services.