Hyundai Motor to Make a Comeback Move in Overseas Markets This Year

Focusing on Overseas Markets Slowed by COVID-19 This Year
Accelerating Development of High-Value Vehicles Like Electric Cars and Genesis

[Asia Economy reporters Changhwan Lee and Jehun Yoo] Hyundai Motor Company is expected to achieve significant performance improvements this year by leading overseas market expansion in the U.S., China, and other regions, as well as increasing sales of eco-friendly vehicles and high value-added models like Genesis. The company will also focus on future mobility development by investing a total of 8.9 trillion KRW this year alone.

On the 27th, Hyundai Motor predicted that its sales revenue (automobile division) will increase by 15% compared to the previous year. The target operating profit margin is 5%. Considering that last year's sales revenue announced the day before was 103.9976 trillion KRW, this year's sales are expected to reach about 120 trillion KRW, marking the largest scale ever. Operating profit is also expected to reach 6 trillion KRW, the highest since 2014.

Hyundai Motor is focusing most on overseas markets. The strategy is to aggressively target overseas markets, which experienced sluggish sales last year due to the COVID-19 pandemic, to boost performance.

Hyundai Motor's overseas sales target for this year (wholesale basis) is 3,418,500 units, an 11.1% increase from the previous year. Among these, the North American market target is 909,000 units, a 12% increase, and the Chinese market target is 562,000 units, a 27.6% increase.

Among these, Hyundai Motor set its sales target in the U.S., the world's largest automobile market, at 720,000 units, 13% more than the previous year. The market share target was set at 4.8%, 0.4 percentage points higher.

Despite the U.S. industrial demand shrinking by about 15% last year due to the COVID-19 pandemic, Hyundai Motor raised its market share from 4.2% to 4.4%, a 0.2 percentage point increase. The combined market share including Kia was about 8.4%, the highest level in eight years since 2012 (8.7%).

China is also a market where Hyundai Motor aims for a comeback this year. Hyundai Motor raised its sales target in the Chinese market to 562,000 units, 27.6% more than the previous year. Until 2016, Hyundai Motor's annual wholesale sales in China reached 1,142,000 units, but it has been declining since the controversy over the deployment of the Terminal High Altitude Area Defense (THAAD) system on the Korean Peninsula. Last year, when the COVID-19 pandemic fully spread, sales plummeted to about 440,000 units.

This year, Hyundai Motor plans to launch China-exclusive electric vehicles and mid-size sedans such as the Mistra EV and Mintu, as well as the Tucson, Ioniq 5, and China-exclusive multipurpose vehicles (MPVs). Additionally, the premium brand Genesis will also be launched locally to respond to market conditions.

Senior Research Fellow Hanggu Lee of the Korea Automotive Technology Institute said, "Given that the global automotive industry's trends are solidifying around SUVs, eco-friendliness, and premiumization, this strategic setting is positive," adding, "In the U.S. market, Japanese automakers, who are direct competitors of our finished car industry, are struggling with management and strategy setting, which will work as a favorable factor."

Hyundai Ioniq 5

Increasing Sales of High Value-Added Vehicles such as Electric SUVs and Sedans to Achieve High Profitability

Sales of high value-added vehicles such as electric vehicles, SUVs, and sedans will also increase. Hyundai Motor plans to launch the Ioniq 5, the first electric vehicle produced on the dedicated electric vehicle platform (E-GMP), in Europe around March. It is scheduled to be launched in Korea within the first half of the year and in the U.S. in the second half.

Hyundai Motor set its electric vehicle sales target at 160,000 units this year, about 60% more than the previous year. The proportion of eco-friendly vehicle sales is expected to increase from 3% last year to about 10% this year due to the expansion of electric vehicle sales.

Strengthening the Genesis global brand along with the launch of Genesis electric vehicles is also one of Hyundai Motor's goals this year. Hyundai Motor explained that it will build an eco-friendly luxury brand image by expanding the electrified lineup including Genesis electric vehicles.

Executive Vice President Jayong Koo of Hyundai Motor said, "This is the result of Hyundai Motor's electric vehicles being recognized in the global market," and added, "We plan to firmly establish our position as a leader in the electric vehicle market through lineup expansion and product improvement in the future."

The investment scale also increased by 10%, from 8.4 trillion KRW last year to 8.9 trillion KRW this year. Vice President Kanghyun Seo of Hyundai Motor emphasized, "We plan to increase investment by prioritizing securing leading technology leadership for building a mid- to long-term growth foundation and fostering future businesses."