[News Article] Hyundai Motor to bolster hybrid sales amid falling EV sentiment
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
2024.04.29
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