Hyundai Motor to bolster hybrid sales amid falling EV sentiment

By Lee Min-hyung, The Korea Times - Hyundai Motor will boost sales of its hybrid cars and SUVs as part of its key strategy to ensure profitable growth amid falling sentiment for electric vehicles (EV), the company said Thursday during a conference call.

The decision came as demand for hybrid vehicles is on the gradual rise, after the global EV industry entered a chasm this year. The company displayed the vision after disclosing a slight fall in its first-quarter operating profit.

In a regulatory filing, the carmaker reported an operating profit of 3.55 trillion won ($2.58 billion) in the first quarter, down 2.3 percent from the previous year, hit by an overall sales fall. The company, however, generated robust sales of 40.65 trillion won, up 7.6 percent during the same period.

The company said it will place its management focus on defending its profitability by widening sales for hybrid vehicles and SUVs, at a critical juncture when the global EV industry shows no immediate signs of a rebound.

The carmaker also shared its plan to expand investment to widen production of hybrid vehicles.

“We will make additional equipment investments on our EV-dedicated Hyundai Motor Group Metaplant America, so the facility can manufacture hybrid cars as well,” Lee Seung-jo, executive vice president at Hyundai Motor, told investors during the conference call. “This is in response to growing demand for hybrid vehicles. The facility will start its operation sometime in October.”

The carmaker displayed a pessimistic outlook on the overall car industry, as rivalries among existing players deepen and global geopolitical risks show no signs of abating anytime soon.

In response, the company reiterated its strong willingness to improve its product mix by strengthening its hybrid vehicle portfolio and diversifying its IONIQ EV lineup.

The carmaker sold a total of 1.67 million vehicles here and abroad between January and March, down 1.5 percent from the previous year. Its domestic sales reached 159,967, down 16.3 percent from a year earlier, in the aftermath of a temporary shutdown of its production line in Asan, South Chungcheong Province.

But overseas sales growth helped offset the sluggish performance here. The carmaker chalked up 846,800 vehicle sales in the first quarter, up 1.9 percent from the previous year, on favorable responses from territories such as North America, Europe and India, according to the company.

“Even if we face continuous uncertainties in our management environment amid geopolitical risks — sparked by conflicts in the Middle East — and its subsequent impact on the won-dollar exchange rate which has recently widened its volatility, Hyundai Motor still maintains a stable level of profitability on demand growth from our major overseas markets,” an official from the carmaker said.

“We will keep focusing on defending our profitability by improving our product mix with the focus on SUVs and other value-added vehicles.”

Source: https://www.koreatimes.co.kr/www/tech/2024/04/419_373481.html 

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