Hyundai Motor (www.hyundai.com/worldwide) has said that it is predicting a “gradual recovery in earnings” after first-quarter profits fell by a fifth, caused by a lack of sales in China and what it described as rising protectionism in the USA.

Hyundai Motor said first-quarter net profits declined by 21% to 1.4 trillion won ($1.2 billion) — a 13th consecutive year-on-year quarterly decline.

Operating profits declined 6.8% from the previous year to 1.25 trillion won, while sales grew 4.5% to 23.4 trillion won.

Choi Kyung-chul, the vice-president of the South Korean car-maker, said concerns over sales and profitability were growing amid business uncertainties, including US protectionist policy.

“Despite the growing adverse external factors, we will strengthen our competitiveness by launching a new SUV model and the new G70 Genesis car.”

Chung Sung-yop, an analyst at Daiwa Securities, said the car maker was “cushioned by improving sales in emerging markets, including Russia, Brazil and India, which helped offset falling sales in its two biggest export markets — China and the USA”.

He added: “Hyundai’s profits are expected to rebound this year, ending the past five years of profit declines.

“Its product cycle is improving across the board, and the business environment in emerging markets — except China — is improving, while the company is aggressively cutting costs.”