Hyundai Glovis, Non-Affiliated Sales in Finished Vehicle Transport Exceed Half

Hyundai Motor Group's Non-Affiliated Sales Estimated to Surpass 1 Trillion Won

Hyundai Glovis Car Carrier Ship 'Glovis Century'

[Asia Economy Reporter Yoo Je-hoon] Hyundai Glovis expanded the proportion of non-affiliated sales in its finished car maritime transport (PCC) business segment to over 50% for the first time since its establishment last year. This result came from actively targeting global finished car makers based on an expanded fleet and economies of scale, unlike before when dependence on the parent company was high.

According to industry sources on the 23rd, the proportion of non-affiliated sales excluding Hyundai Motor Group (Hyundai and Kia Motors) in Hyundai Glovis's PCC business sales last year expanded to 53%, surpassing 50% for the first time ever. Considering that the PCC business sales last year were about 2.051 trillion KRW, the non-affiliated sales are estimated to have exceeded 1 trillion KRW. This is also the first time non-affiliated sales in the PCC business have surpassed 1 trillion KRW.

In the early stages of the PCC business, Hyundai Glovis's sales proportion from Hyundai Motor Group reached 90%, but it has continuously increased the proportion of non-affiliated sales. Considering that in 2016 the ratio of affiliated to non-affiliated sales was around 60% to 40%, this represents remarkable growth.

The background of this growth is attributed to the economies of scale built by Hyundai Glovis. Last year, Hyundai Glovis operated a total fleet of 90 vessels, ranking second worldwide among automobile shipping companies in terms of supply. Additionally, it secured cost competitiveness by streamlining routes and establishing dedicated automobile terminals in the U.S., creating an integrated logistics system. Based on this, the company succeeded in absorbing volumes from major global automobile brands such as Volkswagen, GM, Ford, and BMW, according to industry evaluations. Supported by this, the vessel load factor (L/F) also improved to 68%.

With improvements in the PCC segment strengthening the profitability of the shipping business, and the logistics and distribution sectors maintaining growth due to increased domestic and overseas finished car sales and increased production at the Anantapur plant in India, Hyundai Glovis's performance last year also improved significantly. Hyundai Glovis recorded consolidated sales of 18.2701 trillion KRW and operating profit of 876.5 billion KRW last year, representing increases of 8.3% and 23.4% respectively compared to the previous year.

A Hyundai Glovis official stated, "The significant increase in non-affiliated volumes in the finished car maritime transport business has improved profitability and overall performance," adding, "We will focus on fostering strategic businesses such as expanding non-automotive logistics and strengthening sales to global shippers to promote future growth."

This content was produced with the assistance of AI translation services.