Disadvantageous Sales Model Compared to Competitors in 2023
Market Share Expected to Decline Next Year
Strong Performance Anticipated in Q3 This Year
[Asia Economy Reporter Hwang Yoon-joo] There is a forecast that Hyundai Motor's performance in 2023 will be worse than this year.
Kim Pyeong-mo, a researcher at DB Financial Investment, stated, "In 2023, there is no model expected to sell more than 200,000 units globally."
On the other hand, various new SUVs, pickup trucks, and EVs from competitors are scheduled to be released continuously until 2023.
Researcher Kim said, "Hyundai Motor's market share (M/S) in the U.S. is expected to decline by 0.6 percentage points compared to this year, and incentives will increase by 149% compared to 2022," adding, "The 2023 performance is expected to fall short of consensus."
Meanwhile, the third-quarter performance this year is expected to exceed expectations. Researcher Kim analyzed, "Third-quarter sales are expected to reach 36.2234 trillion KRW, a 26% increase compared to the same period last year, and operating profit is expected to be 3.1301 trillion KRW, a 95% increase, surpassing the estimate of 2.6474 trillion KRW."
Global factory sales in June approached 340,000 units. It is evaluated that automobile production has already recovered to the level before the chip shortage.
As inventory in the U.S. recovered compared to the second quarter, retail sales in August increased by 14% year-on-year. Incentives also remain at the industry's lowest level of around 500 dollars.
Researcher Kim diagnosed, "The formula for performance improvement, such as the weak Korean won, increased wholesale sales in key regions, and reduced incentives, continues in the third quarter," adding, "Profitability per unit continues to improve following the previous quarter, and the third-quarter operating margin is expected to record 8.6%."
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