Hyundai and Kia Expect Record High Performance Amid Popularity of Eco-friendly Cars and SUVs…Moving to Respond to U.S. and Chinese Markets This Year
Hyundai Motor and Kia are continuing their strong performance, fueled by the booming eco-friendly vehicle market. With each quarter setting new record-high results, industry attention is focused on whether Hyundai and Kia will achieve unprecedented performance in the previous year. According to industry sources on the 22nd, Hyundai Motor and Kia are set to announce their annual results for last year on the 23rd and 24th, respectively. According to financial information provider FN Guide, securities firms estimate Hyundai's annual results to be approximately 173 trillion KRW in revenue and 14.8 trillion KRW in operating profit. Kia is expected to report about 106.9 trillion KRW in revenue and 12.8 trillion KRW in operating profit. If these estimated figures materialize, Kia will set record-high results in both revenue and operating profit. For Hyundai, the company is expected to achieve its highest-ever revenue figures. In 2023, the combined revenue of the two companies reached 262.472 trillion KRW, with operating profit of 26.7348 trillion KRW, marking their best-ever performance. While the possibility of surpassing 30 trillion KRW in annual operating profit seemed likely through the first half of last year, it appears that, based on the estimates, only revenue records have been broken this year. The continued upward trend in Hyundai Motor and Kia's performance can be attributed to a favorable external environment, including the sustained high exchange rates, as well as a strategic focus on selling high-value vehicles such as eco-friendly cars and SUVs. In particular, strong export performance in North America played a key role in driving the companies' improved results. However, it remains uncertain whether this upward trend will continue into this year. This year, the launch of the Trump 2.0 administration has increased policy uncertainty, which has raised concerns about the companies' performance. Despite increasing investments, such as expanding local production bases in the U.S., Hyundai failed to meet the origin requirements for batteries and key minerals used in eco-friendly vehicles. As a result, Hyundai's Ioniq 5, Ioniq 9, and Genesis GV70 electric models were excluded from the U.S. electric vehicle subsidy program. On his first day in office, U.S. President Donald Trump signed an executive order directing the repeal of electric vehicle subsidies, calling them "unfair." The only models from Hyundai and Kia that qualify for the subsidy in the U.S. are the Kia EV6 and EV9. In response, Hyundai Motor Group is focusing all its efforts on meeting the requirements for U.S. electric vehicle subsidy eligibility. A Hyundai Motor Group official stated, "By the second quarter of this year, we will meet the parts origin requirements and be eligible for the subsidy again." Hyundai Motor and Kia are also focusing on targeting the Chinese market to expand their global sales. Hyundai Motor is preparing to launch a China-exclusive electric vehicle this year, aiming to expand sales in China, the world's largest electric vehicle market. Industry experts analyze that Hyundai's Chinese joint venture, Beijing Hyundai, will release a China-exclusive electric SUV model this year, with the price expected to be set around 20 million KRW. Kia has continued to see steady sales growth in China, leveraging its electric vehicle (EV) technology. From January to November last year, Kia's electric vehicle sales in China reached 5,526 units, a 26-fold increase compared to the same period the previous year. Hyundai Motor Group Chairman Euisun Chung emphasized at the company's New Year's meeting earlier this year, "Since things went well last year, we don't have the luxury of being optimistic about this year," adding, "Simply trying to endure won't be a good strategy." This underscores the importance of responding quickly and flexibly to changes in the global automotive market. ChatGPT를 사용하여 번역한 기사입니다.
