Hyundai Motor says it will continue to prioritize making more profitable SUVs and luxury models amid continued market volatility and disruptions.
This week, the company announced its third-quarter results, which reported a 30 percent increase in revenue and a 14 percent increase in sales. Net income was down, but due to “one-time quality-related warranty provisions” as opposed to fewer products.
Sales of Hyundai’s electric vehicle models also rose about 27 percent from the third quarter a year earlier to about 52,000 units, accounting for 5.1 percent of total sales.
However, the company revised its annual global sales estimate to 4.01 million units from 4.32 million units as “volatile supply chain conditions around the world continue to weigh on production.”
“While Hyundai Motor expects a gradual recovery from global chip and component shortages in the fourth quarter, the company expects external uncertainties to persist, including inflation, supply chain disruptions and fluctuations in raw material prices due to geopolitical issues,” the company added.
“In addition, the company expects currency volatility as well as increased marketing costs due to tougher competition among automakers as a burden for the rest of this year.”
Hyundai said its main coping mechanism will be to “focus on recovering sales through an optimized production and sales plan in global operations that will enhance the product mix with SUVs and luxury models to ensure high profitability.”
Take out the corporate waffle, and that means Hyundai will prioritize its cars with the highest margins, pointing toupon down, any shortages affecting cheaper cars.
This tactic is supported by Kia, which also reported good earnings and sales growth in the third quarter, with retail sales of BEV models totaling 40,000 units, up 34.3 percent.
“Kia plans to continue to expand sales of electrified models with competitive models such as the EV6, as well as focus on high-margin SUV models to increase profitability,” the company said.
“Furthermore, the company will continue to improve product and fitment in line with the improved perception of the Kia brand,” he added, suggesting a focus on top-of-the-range models, which could potentially be good news for EV6 and Sorento users. waiting lists…