Car companies like to roll out new versions of their products as older models start to look tired. It is easier to raise prices on updated styles.

Korea's Hyundai Motor has some new cars coming this year and everyone – from its executives to brokerage analysts – will want to see something new. For good reason, Hyundai has had a poor couple of years. All that looks set to change.

Wednesday's results were a reminder to investors of the problems that Hyundai has suffered in the past year: sluggish sales in emerging markets and production drops in Korea. Its shares fell 3 per cent after the numbers were announced.

China and India account for more than a third of vehicles made; add in Brazil and Russia and it is 44 per cent. China's car market next year could be sluggish, following the phasing out of tax cuts for cars with smaller engines.

Yet the Korean carmaker should offset that with the launch of two new models – a saloon and a small SUV – in the second half. Meanwhile, business in Brazil and Russia is recovering after a tough couple of years. Note too that the Korean won has weakened against both the real and the rouble in recent months, making Hyundais cheaper.

Hyundai's biggest problem last year was at home. Korean production, a third of the total (most of which is for export), fell following a more protracted than usual strike by domestic labour unions. Though work stoppages often hit Korea's car industry around the third-quarter wage negotiation period, last year's went on for months rather than weeks. That pushed up its cost of goods to sales ratio by one percentage point to 81 per cent, denting operating profit by almost a fifth.

Assume that labour action this year will be less severe, and some recovery looks likely.

A recurring problem with its unions may have had unintended positive consequences.

Hyundai's global inventory to sales ratio, near historical highs this time last year, has fallen to a respectable two months. Less supply should reduce the discounting that hurts margins. Hyundai Motor should find itself back in the fast lane soon.