Hyundai Motor AGM: "Securing Profitability through Expansion of High-Profit Models... Expecting Turnaround in China"

The First Ever Online Live Broadcast for Shareholders

[Asia Economy Reporters Yu Je-hoon and Woo Soo-yeon] Hyundai Motor Company has announced plans to secure profitability through expanding sales of high-margin models this year and to achieve a turnaround in its underperforming China and commercial vehicle markets.

On the morning of the 24th, at the 53rd Annual General Meeting of Shareholders held at the headquarters in Yangjae-dong, Seoul, Hyundai Motor President Ha Eon-tae stated, "The global business environment this year is expected to remain challenging despite optimistic prospects due to COVID-19 vaccine development, with concerns over virus resurgence, polarized recovery in automobile demand between countries, and continued weakness of the dollar."

The Hyundai shareholders' meeting was held with about 150 attendees and operated under a designated seating system to prevent the spread of COVID-19. Inside the venue, measures such as replacing microphone covers during Q&A sessions and wearing disposable gloves were noticeable to guard against possible infections. Notably, this shareholders' meeting was the first in Hyundai's history to be live-streamed online for shareholders who registered in advance, aiming to prevent COVID-19 spread while encouraging shareholder participation.

SUV Sales Share to Reach 50%... Strengthening Genesis Brand

First, Hyundai plans to increase the sales share of sport utility vehicles (SUVs) this year to enhance profitability. Last year, recreational vehicles (RVs) accounted for 43.2% of Hyundai's total global vehicle sales. Additionally, the company plans to expand sales of its premium brand, Genesis.

President Ha said regarding this profitability strategy, "We will expand the global SUV sales share to 50% based on new models such as the Tucson, Palisade, and Creta, which is a strategic model for emerging markets. For Genesis, we will leverage the full lineup to successfully establish a foothold in the North American market and strengthen efforts to enter new markets."

Besides this, Hyundai intends to reduce fixed costs and lower production costs through increased parts commonality, while continuing to pursue digital-based value chain innovation.

Rechallenging the 'Pain Points' of China and Commercial Vehicle Markets

Hyundai also plans to lay the foundation for a turnaround in its China business, which has been mired in poor performance every year since the deployment of the Terminal High Altitude Area Defense (THAAD) system on the Korean Peninsula. Hyundai's Chinese joint venture, Beijing Hyundai (北京?代), recorded sales of 6.8728 trillion KRW and an operating loss of 1.152 trillion KRW last year, with sales dropping about 30% and losses more than doubling.

Accordingly, Hyundai plans to actively launch new vehicles in China this year, including market-specific models such as the Mintu, Mintu EV, and multipurpose vehicles (MPVs). In the second half of the year, the company also plans to introduce its first dedicated electric vehicle, the Ioniq 5. Furthermore, the premium brand Genesis is preparing for its launch in the Chinese market.

Hyundai will also pursue performance improvement in the commercial vehicle sector. President Ha emphasized, "To restore the deteriorated status of the Chinese market, we will focus on improving sales quality by expanding sales centered on new models, reducing incentives, and maintaining appropriate dealer inventory, while enhancing brand power. For the commercial vehicle business, we will improve profitability by strengthening the foundation of existing operations and enhance the electric vehicle lineup to secure competitiveness for future business."

Shareholders Show Interest in 'Future Mobility'... Strengthening ESG

At the shareholders' meeting, shareholders expressed many questions related to future mobility. Hyundai had previously conducted a survey among shareholders and held a brief presentation at the meeting on "Future Trends in the Automotive Industry and Hyundai Motor's Response."

Lee Bo-sung, Director of Hyundai Motor's Global Management Research Institute, said, "We are currently witnessing the greatest change in the 130-year history of the automotive industry, with competitors such as Google and Tesla entering the market?something unimaginable just a decade ago. The core keywords for the future automotive industry are 'Mobility, Electrification, Connectivity, and Autonomous driving (M.E.C.A.),' and Hyundai will thoroughly prepare for the future."

During this annual shareholders' meeting, the board of directors was reorganized to prepare for future ESG (Environmental, Social, and Governance) management. The existing Transparency Management Committee was renamed the 'Sustainable Management Committee,' and the board appointed its first female outside director and audit committee member, Professor Lee Ji-yoon of the Department of Aerospace Engineering at the Korea Advanced Institute of Science and Technology (KAIST). Professor Lee stated, "As a professor of aerospace engineering and through various academic activities in future technology fields, I will contribute my accumulated expertise and experience to the company's sustainable development."

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