Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Earnings
October 24, 2022 04:45 AM

Hyundai to focus on EVs and luxury cars amid industry turmoil

Hyundai will focus on luxury models, SUVs and EVs to boost profit even as inflation and high raw material prices persist.

Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    Hyundai Ioniq 5 Ulsan production
    BLOOMBERG

    Production of Hyundai Ioniq 5 EVs is pictured in Ulsan, South Korea.

    Hyundai said it will focus on luxury models, SUVs and electric vehicles to achieve what it expects to be record high earnings this year even as challenges such as inflation and fluctuating raw material prices persist.

    While supply chain disruptions continue to stoke uncertainty, and currency volatility and higher marketing costs in the face of tougher competition will be a burden, the global chip shortage should ease in the fourth quarter, Hyundai said Monday as it announced quarterly results.

    The company said it will “focus on the recovery of sales” through a plan that will “enhance its product mix with SUVs and luxury models.”

    Its Grandeur flagship sedan, named Azera in markets outside Korea, is in high demand following its launch this month and will help spur domestic sales momentum, Hyundai said. The Ioniq 6 full-electric car, which was introduced in Korea in the third quarter, is also selling well, it said.

    “By adding the provisions to the operating profit, you would find that Hyundai is doing pretty well,” said Koh Tae-bong, head of research at HI Investment & Securities in Seoul.

    Operating profit for the three months through September was 1.55 trillion won ($1.07 billion). Sales rose 31 percent from a year earlier to 37.7 trillion won. Operating profit was down 3.4 percent from a year earlier, while net income dropped 5.1 percent. Excluding provisions, operating profit topped 2.9 trillion won, the company said.

    Hyundai cut its 2022 sales target to 4.01 million vehicles from 4.32 million, and also trimmed its planned investment for the year to 8.9 trillion won from 9.2 trillion won.

    Hyundai and its affiliate Kia said last week they would book a combined 2.9 trillion won as provisions in third-quarter earnings due to costs related to Theta engines.

    More owners than expected demanded replacement engines during the pandemic rather than buying new cars, pushing up warranty costs, the automakers said.

    The issue could hurt the companies’ share prices in the near term, Nomura analyst Angela Hong wrote in an Oct. 20 note.

    EV sales

    Hyundai said its EV sales rose more than 27 percent from a year earlier to about 52,000 units, accounting for 5.1 percent of overall sales volume. Despite the provisions and challenges such as inflation and geopolitical uncertainty, Hyundai expects record-high results this year, it said.

    The automaker raised its EV sales target for 2023 by 40 percent to about 300,000 units, with the Ioniq 6 accounting for about 20 percent of those sales next year.

    Hyundai also said it is considering investing a joint venture to make batteries in the U.S.

    Related Article
    Hyundai Ioniq 6 EV gains range from better aerodynamics
    Hyundai is developing an 'affordable' electric car for Europe
    RECOMMENDED FOR YOU
    VW's potential battery IPO attracts high investor interest, top shareholder says
    Recommended for You
    VW Battery production
    VW's potential battery IPO attracts high investor interest, top shareholder says
    cupra-born_01.jpg
    VW's Cupra brand weighs entering U.S. market with larger EVs
    The Ford Mach-E
    Ford expects to lose $3B on EVs this year
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us