[Special Stock] Hyundai and Kia Car Sales 'Good Good'... Suppliers Hit Consecutive Upper Limits

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] On the 2nd, following the news of strong sales of Hyundai Motor Company and Kia Motors, auto parts stocks are showing a unified strong performance. Hyundai Industrial and Daewon Industry rose to the price limit early in the trading session, reflecting expectations of improved earnings.

Hyundai Industrial is trading at 11,700 KRW as of 9:30 AM, up 29.86% compared to the previous close. Hyundai Industrial is a specialized manufacturer of automotive interior materials (seats) and a major partner of Hyundai and Kia Motors. Since the 25th of last month, the stock price has been on the rise, and surged sharply after the announcement that the Ioniq 5, launched by Hyundai Motor Company, has continued to sell out not only in Korea but also in Europe.

Hyundai Motor Europe (HME) announced on the 25th of last month (local time) that for the initial batch of 3,000 Ioniq 5 units, pre-orders exceeded 10,000, more than three times the target.

Daewon Industry, a vehicle seat manufacturer, also rose to the price limit, setting a new 52-week high. Daewon Industry is trading at 7,370 KRW, up 1,700 KRW (29.98%) from the previous close, since the start of trading. The company, which started trading at 6,170 KRW, went straight to the upper limit from early trading following the news of strong sales of Kia's Carnival.

Daewon Industry exclusively supplies seats for the Carnival model, which has ranked first in sales at Kia for five consecutive months recently. Kia sold 41,481 units domestically last month, with 8,043 units of the Carnival sold.