Hyundai Motor Achieves Record Q3 Performance... 'Ssing Ssing' in US and European Markets (Comprehensive)

Hyundai Motor's Global Sales Reach 1.04 Million Units in Q3
Strong Performance in North America and Europe Eco-Friendly Vehicle Markets
Genesis and SUVs Account for 60% of Sales
"Operating Profit Margin of 9% Easily Achievable This Year"

Hyundai Motor Company achieved its highest-ever performance as of the third quarter of this year. Despite increasing global uncertainties such as slowing electric vehicle demand, economic recession, and geopolitical risks, Hyundai maintained solid results. This was thanks to increased sales of high value-added vehicles, mainly Genesis and sport utility vehicles (SUVs), centered on advanced markets such as North America and Europe.

On the 26th, Hyundai Motor announced that its sales for the third quarter of this year increased by 8% year-on-year to 41.0026 trillion KRW, and operating profit rose 146% to 3.8217 trillion KRW. Although this quarter's operating profit did not reach the record high of over 4.2 trillion KRW recorded in the previous quarter, it is still a high figure compared to last year's quarterly average of 2.4 trillion KRW. It is the best performance among all third quarters in history.

First, global sales volume (wholesale sales) in the third quarter was recorded at 1,045,510 units, up 2% year-on-year. Notably, growth in the North American market, which has been actively responding to eco-friendly vehicle sales following the implementation of the Inflation Reduction Act (IRA), stands out. Hyundai sold 275,000 units in the North American region in the third quarter, an increase of 12.8% compared to the previous year. In addition, sales in the European market, where overall automobile demand increased, rose 7.9% to 153,000 units.

Furthermore, Hyundai increased profitability by expanding sales of high-margin vehicles such as Genesis and SUVs in the global market. Among the vehicles sold in the third quarter, Genesis accounted for 5.1%, and SUVs accounted for 54.7%. This means that 6 out of 10 Hyundai vehicles sold globally in the third quarter were either Genesis or SUVs.

Proportion of Eco-friendly Vehicle Sales Compared to Total Hyundai Motor Sales
Photo by Hyundai Motor

Sales of eco-friendly vehicles also increased significantly compared to the same period last year. This was due to the expansion of the hybrid lineup and increased sales of electric vehicle-exclusive brand vehicles such as Ioniq 5 and 6. Hyundai sold 168,953 eco-friendly vehicles globally in the third quarter, a 33% increase year-on-year.

In particular, in the North American market, where the IRA has been in effect for one year, Hyundai sold 47,000 eco-friendly vehicles. The share of eco-friendly vehicle sales, including electric vehicles and hybrids, exceeded 20% of total sales in the North American market in the third quarter. In Europe as well, Hyundai sold 57,000 eco-friendly vehicles, accounting for 37% of total European market sales.

Hyundai is confident that it can smoothly achieve the upper end of its annual guidance this year due to strong sales in key regions. In the second quarter, Hyundai raised its guidance to a sales growth rate of 14-15% and an operating profit margin of 8-9%.

Despite global concerns about slowing electric vehicle demand, Hyundai drew a clear line by stating it will not revise its previously announced mid- to long-term electrification plans. Hyundai is building the Hyundai Motor Group Meta Plant America (HMGMA) in the United States, aiming to start operations in the second half of 2024 to qualify for electric vehicle subsidies. Hyundai plans to proceed with the mass production launch of HMGMA without any setbacks.

Seo Kang-hyun, Head of Hyundai Motor's Planning and Finance Division, said, "Despite global economic uncertainties in the upcoming fourth quarter, Hyundai will continue steady growth in key markets," adding, "We will proactively respond to market conditions based on a profitability-centered decision-making system and strengthened regional response systems."

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