Korean Media: Hyundai Motors Sees Declines Across All Markets Except the U.S.!
On August 21, South Korean media outlet Today's Finance published an article stating that Hyundai Motor experienced declining sales in most major markets during the second quarter, excluding the United States. Due to deteriorating external conditions such as tariffs and geopolitical risks, coupled with intensified competition from Chinese automakers, the company’s profitability has inevitably declined. Hyundai Motor plans to launch new popular models in key markets this second half of the year, aiming to trigger a sales rebound.
Data released by Hyundai Motor shows that, apart from the U.S., car sales in most regions fell significantly during the second quarter of this year. Hyundai sold 265,000 vehicles in the U.S., marking a 0.9% increase.
In contrast, European sales dropped by 10.9% to 144,000 units. This decline was primarily driven by aging core models such as the Kona and Tucson, along with a lack of small electric vehicle offerings to counter the growing pressure from Chinese electric vehicles. Lee Seung-ju, Vice President and Head of Finance at Hyundai Motor, said: “We are missing a B-segment electric vehicle to compete effectively with Chinese automakers.” He added: “Achieving a 100% sales target in Europe will be extremely difficult.”
Sales in Africa and the Middle East fell by 23.8%, while China’s market sales plummeted by 36.9%. Domestic sales in South Korea also declined by 16.4%, mainly due to production disruptions caused by a fire at an engine valve component supplier. Notably, the drop in sales of high-value-added models such as Genesis and Palisade not only reduced overall volume but also worsened the product mix.
Profitability has been significantly impacted. Operating profit reached 2.8509 trillion KRW, down 20.8% year-on-year.
Lee Seung-ju stated: “Since most of the production disruptions involved high-value-added models, the deterioration in product mix negatively affected operating profit. However, with the expected continued rise in the share of hybrid vehicles, recovery from production interruptions and improvements in product mix are expected to have a significant positive impact in the second half of the year.”
Hyundai Motor will introduce new models tailored for various markets as a key driver for rebounding performance in the second half of the year. The parts supply issues that previously caused production interruptions have now been resolved, and the company plans to increase output in the second half to offset lost sales.
Lee Seung-ju said: “Thanks to the launch of new models in the second half of the year, we expect growth in the European market next year, and we will maintain our annual operating profit margin forecast of 6.3% to 7.3% unchanged. Considering market outlook, our annual sales target may be slightly below expectations.”
Original source: toutiao.com/article/1874115779156234/
Disclaimer: The views expressed in this article are those of the author alone.