Hyundai Motor’s’V-shaped rebound’ continues… Sales growth 15%, operating margin 5%

Hyundai Motor Company recorded an operating profit of 1.64 trillion won in the fourth quarter of last year, gaining a stellar beauty.

Despite the decrease in sales due to the aftermath of the corona, it is the result of increasing sales of high-margin vehicles such as SUVs and Genesis. Through this, the operating profit margin recovered to the 5% level for the first time since the third quarter of 2017.

Hyundai Motor Company plans to improve profitability this year by successfully establishing the global market for Genesis and Ioniq brands, expanding SUV sales, promoting production and profit optimization, and accelerating cost innovation.

Hyundai Motor Company announced on the 26th that it recorded a consolidated profit of 1.64 trillion won by holding a conference call for business performance in the fourth quarter of 2020. Operating profit increased 40.9% compared to the same period last year.

During the same period, the company recorded sales of 29,243.4 billion won, ordinary income of 1.521.7 billion won, and net income of 1.376.7 billion won.

Seo Kang-hyun, vice president of Hyundai Motors’ Finance and Economy Division, explained, “The automobile division showed high profitability by improving the mix through increased sales of new SUVs and Genesis even in an unfavorable exchange rate environment.”

As of 2020 (January-December), the business performance was aggregated as ▲Sales of 374,4737 units ▲Sales of 103,9976 billion and ▲Operating profit of 2,781.3 billion KRW.

Vice President Seo Kang-Hyun said, “Last year, we have been making efforts to respond to risks through supply chain management and preemptive liquidity securing amid the deteriorating business environment caused by Corona 19, secure market share through new car cycles, and successfully strengthen profitability.

He added, “We have been actively pursuing strategies to secure future technological competitiveness and expansion of investments. We are positively seeing the possibility of achieving carbon dioxide regulation in the European market in 2020 to strengthen our position in the electric vehicle market.”

Hyundai Motor Company plans to thoroughly prepare for future growth through eco-friendly vehicles, future technologies, and innovations in business competitiveness, taking this year as the first year of a major transformation into a new growth engine.

Through the annual earnings guidance, we presented a target for auto sales growth in 2021 of 14-15% compared to the previous year and an operating margin target of 4-5%.

To this end, we will make every effort to strengthen the status of eco-friendly vehicles.

Ja-Yong Koo, managing director of IR, said, “Even in the Corona 19 situation last year, we sold 100,000 electric vehicles, mainly Kona EV,” and said, “This is a 55% increase compared to 2019.”

The global market share of Hyundai’s electric vehicle has been increasing every year since the launch of Ioniq in 2016. As of the end of 2020, it reached 5%.

“This is the result of being recognized in the global market,” said Koo. “We plan to further solidify our position as a leader in the electric vehicle market by expanding the lineup and improving product quality in the future.”

Hyundai Motor Company plans to add four electric cars this year.

“We will release the Mistra EV in China, and in March, we will release the Ioniq 5, which is a platform exclusively for electric vehicles, in Europe,” said Mr. Ja-yong Koo.

He added, “The sales target for electric vehicles in 2021 has been set to 160,000 units, a 60% increase compared to 20 years,” he added. “We will try to achieve European fuel economy regulations this year, focusing on Ioniq 5 and Kona EV.”

In order to enhance profitability, Genesis plans to increase sales.

“Last year, Genesis launched the G80 and GV80, and sold 128,000 units, up 46% compared to 2019,” said Mr. Ja-yong Koo. .

Ja-Yong Koo suggested the sales target of Genesis this year to 200,000 units.

He emphasized, “With the global launch of the G80 and GV80 and full-scale sales of the GV70, we will sell 200,000 units, an increase of 55% compared to the previous year.”

On this day, Hyundai Motor Company also revealed its strategy for the North American market. It also suggested a specific goal of selling 720,000 units, an increase of 13% from the previous year, through the expansion of the Genesis lineup and the launch of eco-friendly cars.

Ja-Yong Koo said, “Due to the corona effect last year, sales in North America decreased by 10%, but the market share increased from 4.2% in 2019 to 4.4%. As a result of SUV sales such as Palisade, Kona, and Venue increased by 10% year-on-year, the proportion of SUVs was 2019. It has expanded from 52% a year to 63%.”

The strategy for the US market this year is growth in balance between sales and profitability. The company plans to continuously raise brand awareness by strengthening the Genesis lineup and expanding eco-friendly car models.

Goo said, “Following the new GV80 and G80, we plan to launch new Tucson cars in the first quarter and continue to increase their market share,” he said.

He continued, “We will release the GV70 in the second quarter and Hyundai Motor’s first pickup trucks, Santa Cruz and Ioniq 5 in the second half,” he said. I’m doing it,” he added.

Meanwhile, Hyundai Motor Company plans to invest a total of 8.9 trillion won this year, such as ▲ facility investment (CAPEX) 4.5 trillion won ▲ R&D investment 3.5 trillion won ▲ strategic investment 900 billion won to continue future growth.