[Click eStock] "Hyundai Motor, Electric Vehicle Competitive Advantage Assessment Diluted"

Samsung Securities "Hyundai Motor Target Price Lowered from 325,000 KRW to 305,000 KRW"
Conservative EV Transition Plan Compared to Competitors... EV Sales Volume Forecast Also Revised Downward

[Asia Economy Reporter Gong Byung-sun] As global competitors enter the electric vehicle (EV) market, Hyundai Motor's competitive advantage in future vehicles is being diluted. However, volume growth is expected in the second half of the year. Accordingly, Samsung Securities has lowered Hyundai Motor's target price from 325,000 KRW to 305,000 KRW, while maintaining a 'Buy' investment rating.

According to Samsung Securities on the 1st, Hyundai Motor's competitive edge in the future vehicle sector is weakening. This is because global competitors such as Volkswagen, General Motors, and Ford are aggressively announcing EV investments and EV transition plans. Researcher Lim Eun-young of Samsung Securities explained, "The EV sales volume in 2025 and the EV transition ratio in 2030 by U.S. and European companies are more aggressive compared to Hyundai Motor," adding, "It is difficult for foreign investors to choose Hyundai Motor within the EV theme."

It appears that Hyundai Motor needs to secure a leading position in the U.S. EV market. With the proportion of sport utility vehicles (SUVs) exceeding 65% of Hyundai Motor and Kia's U.S. sales, EV sales have become essential amid tightening fuel efficiency regulations. If Hyundai misses the U.S. EV market while sales in China remain sluggish, it will be difficult to rank among the top three global EV manufacturers. In the first quarter of this year, Hyundai Motor and Kia sold 56,761 EVs, a 43.8% increase compared to the same period last year, but their ranking dropped from 5th to 8th. Nevertheless, Hyundai Motor and Kia plan to invest $7.4 billion to build EV production bases in the U.S.

Accordingly, Samsung Securities has revised down its 2030 EV sales forecast from 1.2 million units to 1 million units, reflecting a more conservative EV transition plan compared to competitors. Despite this, Researcher Lim said, "There are many opportunities for collaboration with IT companies through the EV transition," and added, "We have previously revised upward the EV sales forecast considering the possibility of Hyundai Motor and Kia undertaking contract manufacturing for Apple Car if the issue arises."

However, volume growth is expected in the second half of the year. It is predicted that Hyundai Motor will target the Southeast Asian market through the operation of its Indonesia plant. The current production capacity of 150,000 units is expected to increase to 250,000 units by 2023. Hyundai Motor acquired General Motors' plant at the end of last year and will start operations from the fourth quarter of this year after equipment maintenance.