Hyundai Motor, Kia, and Others Outperform Market Returns This Month
Hyundai Mobis Up 16% in December Alone... Expectations for Aggressive Electric Vehicle Expansion Next Year
[Asia Economy Reporter Minwoo Lee] Automobile stocks, which struggled to rebound since the beginning of the year due to adverse factors such as the shortage of automotive semiconductors, are gaining momentum toward the end of the year. This is interpreted as investor sentiment returning amid growing expectations for a full-scale push into the electric vehicle market next year.
At 11:06 a.m. on the 24th, Hyundai Motor's stock price recorded 214,500 KRW, up 2.63% from the previous day. This is the highest price since the 24th of last month. Following a 1.21% increase the day before, the stock has shown strength for two consecutive days. Hyundai Mobis also surpassed the 260,000 KRW mark for the first time in about two months. It has continued its upward trend with a 3.73% rise on the 22nd and 2.40% the day before. Since the beginning of this month until the previous day's closing price, it has risen 16.33%. Hyundai Motor and Kia also increased by 6.91% and 8.23%, respectively, during the same period, outperforming the KOSPI return of 5.61%. In short, automobile stocks have finally 'started their engines' after a long time.
The growing expectations are attributed to Hyundai Motor's active market approach, including raising its electric vehicle sales targets. Recently, Hyundai Motor raised its 2026 electric vehicle sales target from about 1 million units to 1.7 million units. It also announced plans to invest 7.4 billion USD (approximately 8.8 trillion KRW) to expand electric vehicle production facilities in the United States. Alongside announcing detailed investment plans next year, the company emphasized expanding its electric vehicle lineup to 13 models. Accordingly, Hyundai Motor's electric vehicle sales target (guidance) for next year is 220,000 units, a 57% increase compared to this year. This confirms the previously lacking aggressive moves.
Although Hyundai Motor Group announced the E-GMP, an electric vehicle-dedicated platform, and launched electric vehicles based on it this year, concerns about competitiveness arose due to aggressive electric vehicle strategies announced by overseas competitors such as Volkswagen and General Motors (GM). However, through this upward revision of sales targets, Hyundai Motor has expressed confidence in maintaining its position as a market-leading group (3rd place).
Ja-il Lee, a researcher at Eugene Investment & Securities, explained, "Expanding market share in the U.S. electric vehicle market will be the trigger for the turnaround in the stagnant industry stock prices," adding, "Hyundai Motor and Kia, expected to expand their market share in the U.S. electric vehicle market, and Hyundai Mobis, which supplies key electric vehicle modules, are expected to benefit."
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