Hyundai Motor, Will Electrification Movement Become a Catalyst for Stock Price?

[Asia Economy Reporter Junho Hwang] Hana Financial Investment maintained its overweight opinion and target prices for the automobile sector on the 26th. The target price for Hyundai Motor is 280,000 KRW per share, and for Kia Motors, it is 110,000 KRW.

Hana Financial Investment attributed the sluggish stock performance in the automobile sector to the relatively slow pace and plans for the transition to electric vehicles. However, recent indications from Hyundai Motor's CEO about raising electric vehicle sales targets and the implementation of a reorganization of the R&D division focused on electrification suggest an acceleration towards electrification, which is expected to have a positive impact on valuation and stock prices.

In a recent interview with a media outlet, Hyundai Motor raised its 2026 electric vehicle sales target to 1.7 million units, shortened the development schedule for electric vehicles to secure more lineups, and hinted at securing additional dedicated platforms beyond E-GMP.

Seonjae Song, a researcher at Hana Financial Investment, predicted, "The sequential launch and sales contribution of the Ioniq 5 and EV6 in Europe and the United States will increase the monthly electric vehicle market share, and when the electrification targets and specific execution plans expected in the first half of next year are disclosed, they will act as additional catalysts."

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