South Korea's Hyundai Motor Co. reported a decline in profit for a fifth consecutive quarter.
The profits declined in China and United States due to the cost of promotions that were done to strengthen car sales and unfavorable foreign exchange trends.

Net income fell 1% to 1.91 trillion won ($1.76 billion) in the quarter that ended in March. It has beaten the 1.71 trillion won average of 23 analyst estimates that were compiled by Bloomberg.

The Seoul-based company's operating profit declined 18% to 1.59 trillion won, missing the 1.71 trillion won average of analyst estimates.

In China, there was a decline in quarterly sales amid intensifying competition in the carmaker’s largest market. The company is relying on new versions of its Tucson sport-utility vehicle, which was unveiled earlier this year, and Elantra sedan in a bid to boost sales.

The carmaker said it anticipates that the earnings are likely to improve in the current quarter. The earning would be increased by introduction of the latest version of its Tucson SUV.

On a conference call, President Lee Won-hee said, “We were not able to cope with the market demand because of SUV capacity constraints, which have impacted our earnings”.

Lee mentioned that Hyundai is actively considering its options to boost the production capacity in the United States and China to keep up with market growth.

He added that the company is also considering to enter the pick-up truck market, a segment dominated by US and Japanese rivals.

Last year, the vehicle sales targets raised by Hyundai and Kia even though the demand for their mainstay sedans halted. Hyundai had to boost sales promotion incentives by nearly 30% in the US market, to an average $2,200 per vehicle, in a bid to clear inventory during the quarter.