Ionic 5, launched in March, starting in Europe
This year, we aim to sell 160,000 electric cars and 4.16 million finished cars.
Kia Motors’ headquarters in Yangjae-dong, Seoul. Photo = Korea Economic Daily DB
Last year, Hyundai Motor Company’s operating profit was less than 3 trillion won due to the contraction of the global automobile market due to the provision for quality cost and the spread of the novel coronavirus infection (Corona 19).
Hyundai Motor Company(251,500 -3.27%)On the 26th, in a conference call for the announcement of earnings, last year’s sales and operating profit decreased by 1.7% and 22.9% compared to the previous year to 103,9976 billion won and 2.781.3 billion won, respectively.
However, it is analyzed that the actual profitability has improved considerably, considering that it accumulated a provision for quality of 2,1352 billion won related to the’Theta 2 GDI engine’ in the third quarter of last year.
Results in the fourth quarter of last year showed a clear rebound. Hyundai Motor’s fourth quarter sales and operating profit increased 5.1% and 40.9% from the same period of the previous year to 29,243.4 billion won and 1.64 trillion won. Ordinary income and net income also increased by 34.4% and 78.3%, recording KRW 1.521.7 trillion and KRW 1.376.7 trillion, respectively.
In most markets last year, Hyundai’s finished car sales decreased compared to 2019. Photo = Hyundai Motor Company
The number of vehicles sold worldwide by Hyundai Motor Company annually decreased by 15.4% from 4.25,528 in 2019 to 374,4737 in 2020. Hyundai Motor said, “Although there is an impact on the re-proliferation of Corona 19, global auto demand is showing a gradual recovery.”
As sales of luxury cars and SUVs increased, the operating margin also improved. Hyundai Motor’s operating margin in the fourth quarter of last year was 5.6%, exceeding 5% for the first time since the third quarter of 2017, 5.0%. Hyundai Motor plans to boost its earnings this year thanks to the recovery of demand in the automobile market.
Regarding the future outlook, Hyundai Motor Company said, “It is difficult to expect demand to recover to the level before Corona 19, and difficult business environments such as intensifying competition and unfavorable exchange rates will continue.” The operating margin is aimed at 4-5%.”
Hyundai Motor Company set a goal of selling 4.16 million finished cars this year. Photo = Hyundai Motor Company
To this end, it will focus on improving profitability by expanding SUV sales, optimizing production and profit, and accelerating cost innovation, while promoting the global market for Genesis and Ioniq brands. Ioniq 5, which is equipped with E-GMP, an electric vehicle platform for the first time, is about to launch. Hyundai Motor Company unveiled that “Ioniq 5 will be released in Europe this March,” and “will be released sequentially in Korea and the United States.”
The Genesis G80 electric vehicle eG80 and Genesis semi-midsize SUV JW (project name) are also scheduled to be released within this year. Through this, the plan is to achieve 160,000 electric vehicle sales this year. To improve profitability, the company decided to start selling the SUV Genesis GV70 to the North American market in the first half of the year and the pickup truck Santa Cruz in the second half. This year, the sales target for finished cars was set to 4.15 million units, including 740,500 units in the domestic market and 3,418,500 units in the overseas market.
It is also making an investment of 8.9 trillion won this year. Hyundai Motor Company has decided to spend 3.5 trillion won in facility investment (CAPEX) and 3.5 trillion won in research and development (R&D) within the year to preoccupy the future car market such as electric and hydrogen vehicles. It also allocated 900 billion won for strategic investment. Meanwhile, the dividend at the end of 2020 will remain the same as the previous year of 3,000 won.
Sesung Oh, reporter of Hankyung.com [email protected]
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