Hyundai Motor Group Logs Best-Ever Business Performance in 2022

Hyundai Motor Group, which achieved its best-ever business performance last year, is now poised to become a global top-three electrification company.

Hyundai Motor and Kia Motors, setting greater sales goals for this year, is stepping on the gas to become a global top-tier.

Hyundai Motor Group has revved up EV car sales goals for this year to solidify its electrification leadership.

Some business sources cited barriers, such as the U.S. Inflation Reduction Act, exploration of the Chinese market and price competitiveness, but Hyundai Motor Group sees that it is possible to achieve the goals.

According to the automaker group, Hyundai Motor and Kia Motors posted 9,819.8 billion won and 7,233.1 billion won in operating profit last year, the best-ever business performances, respectively.

On the global market, Hyundai Motor and Kia Motors sold 3,942,925 and 2,901,849 units, respectively.

The Korean automobile industry said Hyundai Motor Group is predicted to rank 3rd in global sales after Toyota Group and Volkswagen Group.

Hyundai Motor and Kia Motor plan to solidify the global No. 3 position in terms of global sales on the back of their remarked achievements in 2022.

To this end, Hyundai Motor and Kia Motors each aim to sell 4.32 million units and 3,2 million units on global markets this year, a 10 percent surge over last year’s goals.

As the global eco-friendly car market is forecast to maintain high growth with a focus on EVs on the back on strengthening of environment restrictions by major countries, rising eco-friendly infrastructure investments and expanding preference to eco-friendly cars, Hyundai Motor Group plans to ram up its global electrification leadership by concentrating on EV car sales.

To this end, Hyundai Motor Group has set aggressive EV car sales goals for this year.

Hyundai Motor aims to sell 330,000 EV cars, a 54 percent year-on-year surge, while Kia Motors sets its EV car sales target at 250,000 units, a 57 percent year-on-year jump.

The EV sales goals are designed to rev up their sales, operating profit and the operating profit to sales rate.

Experts shared the view that Hyundai Motor Group should overcome a few barriers, such as risks related to the U.S. IRA, to retain the No. 3 position in terms of global sales and ramp up electrification leadership this year.

The U.S IRA, subsidizing EVs produced in the United States, serves as a hindrance to sell homemade EVs there.

The experts say that Hyundai Motor Group is required to overcome the IRA and ramp up its presence in the North America, the world’ biggest car market.

Hyundai Motor Group’s expanding sales in the Chinese market is one of the automaker group’s major tasks.

Hyundai Motor Group has seen its sales decline in the Chinese market, one of the world’s biggest car markets, threatened by local brands, since 2010.

Hyundai Motor and Kia Motors saw car sales drop 27.8 percent and 44.9 percent the Chinese business sphere in the fourth quarter of last year, respectively.

Hyundai Motor Announces 2022 4th Quarter Business Results

Hyundai Motor Company on Jan. 16 announced its 2022 annual and fourth quarter business results.

Last year, the company sold 3,942,925 vehicles worldwide, up 1.3 percent from 2021. Annual revenue increased 21.2 percent to 142.5 trillion won.

Annual operating profit climbed 47 percent to 9.82 trillion won with 6.9 percent of operating profit margin. Net profit recorded 7.98 trillion won, up more than 40 percent year over year.

In 2022, Hyundai was able to achieve strong business results due to increased sales for SUVs and Genesis luxury brand models as well as a favorable exchange environment.

In the fourth quarter of 2022, Hyundai sold 1,038,874 units around the globe.

Sales in markets outside of Korea were up by 9.3 percent to 846,825 units as the global component shortage gradually recovered.

Sales in Korea increased 3.3 percent to 192,049 units, fueled by strong demand for the seventh-generation Grandeur sedan as well as Genesis lineups.

The fourth-quarter revenue increased 24.2 percent year-over-year to 38.52 trillion won.

Hyundai’s operating profit in the period climbed nearly 120 percent from a year earlier to 3.36 trillion won, with the operating profit margin finishing at 8.7 percent.

Also, the company recorded a net profit (including non-controlling interest) of 1.71 trillion won, up 144 percent year-over-year.

Despite market uncertainties, such as rate fluctuation and ongoing supply issues, the company optimized its production at global plants as the component shortage issue gradually improved.