Hyundai Motor expects bleak business outlook in Q4
2023-02-02
來源： 開云體育手機app下載
Hyundai Motor and Kia's headquarters in southern Seoul / Courtesy of Hyundai Motor Group
By Kim Hyun-bin
Hyundai Motor expects its sales will continue to decline in the fourth quarter of this year and beyond, citing the continued shortage of automotive chips, Russia's war in Ukraine and other unfavorable business conditions, company officials said, Monday. But global demand for its SUVs and eco-friendly vehicles will increase, offsetting falling sales of gasoline- and diesel-powered cars, they said.
"The vehicle market has been stagnant lately due to several risk factors, such as supply issues for automotive semiconductors, rising raw material prices and reduced demand due to interest rate hikes in major countries," a Hyundai Motor official said in a third-quarter earnings announcement conference call held, Monday. "The cost burden is expected to increase as the impact of the raw material price increases is expected to rise in the second half of the year. The recovery of global car sales is progressing more slowly than expected, while external uncertainties are increasing."
Accordingly, Hyundai Motor plans to improve profitability by making continuous changes to its product structure, focusing on SUVs, the Genesis brand and eco-friendly vehicles. As of the end of the second quarter, most of Hyundai Motor's 640,000 unsold vehicles in Korea were high value-added vehicles such as SUVs and Genesis models, Hyundai Motor explained.
In the European market, sales of eco-friendly vehicles also increased by 11 percent compared to the previous year amid a decline in industrial demand. It is analyzed that the expansion of sales of the IONIQ 5 and hybrid electric vehicles (HEV) was effective. In the U.S. market, the proportion of SUV sales increased by 75 percent.
Hyundai Motor predicted that the recent surge in gasoline prices would positively affect the growth of eco-friendly vehicles. Hyundai Motor plans to respond immediately to the growing demand for eco-friendly vehicles in the U.S., starting mass production of the Santa Fe HEV at its Alabama plant this month.
"Following the IONIQ 5, we are promoting the sales of the IONIQ 6 in 2023 and the IONIQ 7 thereafter," the official added.
Hyundai Motor recorded an operating profit of 1.5 trillion won in the third quarter even after reflecting over 1 trillion won in quality costs related to the Theta 2 GDI engine. This figure is a result of increased sales of high value-added products and an increase in the won-dollar exchange rate. Although Hyundai Motor lowered its sales target for this year, it slightly raised its operating profit target.
Hyundai Motor announced Monday that it sold 1,025,000 cars in the third quarter of this year, recording 37.7 trillion won in sales and 1.55 trillion won in operating profit. Sales increased 30.6 percent from the same period last year, but operating profit decreased by 3.4 percent.
In the third quarter of this year, overall sales increased mainly in high value-added models and the exchange rate helped profitability, but operating profit decreased as 1.36 trillion won was reflected in the quality cost related to the Theta 2 GDI engine. Net income decreased by 5.1 percent to 1.41 trillion won.
Hyundai Motor revised its global sales target to 4.01 million vehicles for the year from 4.32 million vehicles set earlier this year.
