Hyundai Motor said it will continue to prioritize the production of SUVs and luxury cars with more profit in the context of market volatility and disruption.
This week, the company announced Q3 business results, which highlighted 30% revenue growth and 14% revenue growth. Net profits fell, but due to “one-off quality-related warranties” as opposed to a leaner product mix.
Sales of Hyundai’s EV models also increased by about 27% from the third quarter of last year to about 52,000 units, or 5.1% of its total sales.
However, the company revised its annual global sales estimate from 4.32 million units from 4.32 million to 4.01 million, due to “continued volatile global supply chain conditions”. continue to affect production”.
“While Hyundai Motor expects a gradual recovery from global chip and component shortages in the fourth quarter, the company anticipates continued external uncertainties, including inflation, supply chain disruptions and raw material price fluctuations due to geopolitical issues,” the company added.
“Additionally, the company expects volatile currency rates as well as increased marketing costs due to stiffer competition among automakers to be a burden for the rest of this year.”
Hyundai says its key response mechanism will be “focusing on sales recovery through optimized production-sales planning in its global operations to enhance its product mix.” with SUV and luxury models to ensure strong margins.”
Eliminate the company’s shortfall and this means Hyundai will prioritize its cars with the highest profit margins, pointing to any shortages affecting cheaper vehicles.
This tactic is reflected by Kia, similarly, sales and sales grew well in the third quarter, plus retail sales of BEV models totaled 40,000 units, an increase of 34, 3%.
“Kia plans to continue to expand sales of electric vehicles with competitive models such as the EV6 and also focus on high-margin SUVs to increase profitability,” the company said.
“Furthermore, the company will continue to improve products and incorporate trims in line with Kia’s enhanced brand awareness,” it added – indicating a focus on top-of-the-line models, which can good news for those on the EV6 and Sorento waiting lists…
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