Hyundai Motor, Annual Operating Profit of 15 Trillion Won Last Year... No.1 Among Domestic Listed Companies

Hyundai Motor Expands Eco-Friendly Vehicle Sales Mainly in Advanced Markets
HEV Share Increases as EV Demand Slows
Conservative Sales Target of 4.24 Million Units This Year
Maintains Aggressive Stance on Future Investments

Hyundai Motor Company recorded its highest-ever performance last year, becoming the top domestic listed company in operating profit. It surpassed Samsung Electronics, which had held the number one position for the past 14 years, by posting an annual operating profit in the 15 trillion won range. The strategy of increasing sales focused on eco-friendly vehicles in advanced markets such as North America and Europe proved effective. Amid a recent slowdown in electric vehicle demand, Hyundai proactively expanded its hybrid (HEV) lineup to flexibly respond to market changes.

On the 25th, Hyundai Motor announced that it recorded sales of 162.6636 trillion won and operating profit of 15.1269 trillion won last year. Despite reflecting the sale of its Russian plant, these figures represent increases of 14% and 54%, respectively, compared to the previous year. The annual operating profit margin was 9.3%.

Hyundai’s annual global sales volume was 4,216,898 units, exceeding 4 million units. Among these, eco-friendly vehicle sales reached 695,382 units, a 37% increase from the previous year. The strategy of expanding the HEV lineup was effective amid a global slowdown in electric vehicle (EV) demand.

Until 2022, the proportions of EV (5.3%) and HEV (6.1%) in Hyundai’s total global sales were similar. However, last year, the HEV proportion (8.9%) significantly surpassed that of EV (6.4%).

In the fourth quarter of last year, sales increased by 8% year-on-year to 41.6692 trillion won, and operating profit rose by 0.2% to 3.4078 trillion won. Global market sales volume in the fourth quarter increased by 4.9% year-on-year to 1,089,862 units.

Domestically, sales increased centered on sport utility vehicles (SUVs), supported by the new model effect of key models such as the new Santa Fe. Overseas, sales volume rose 5% year-on-year due to strong sales in major markets including North America, Europe, and India. The expansion of the HEV proportion was also notable in fourth-quarter eco-friendly vehicle sales. Of the 173,297 eco-friendly vehicles sold in the fourth quarter, 103,133 were HEVs. Electric vehicle sales were about half that number at 57,975 units.

Hyundai set its annual wholesale sales target for this year at 4.24 million units, a 0.6% increase from last year. The target for consolidated sales growth rate compared to the previous year was set at 4-5%, and the operating profit margin target was set at 8-9%. These targets are quite conservative compared to last year’s performance.

However, Hyundai maintained an aggressive stance on investment plans for this year. With an increase in the number of mass-produced models and the full-scale construction of a new electric vehicle-only plant in Georgia, USA, the company plans to continue investing in future technologies. By category, it announced plans to invest a total of 12.4 trillion won, including 4.9 trillion won in research and development (R&D), 5.6 trillion won in capital expenditure (CAPEX), and 1.9 trillion won in strategic investments.

Meanwhile, reflecting its strong performance, Hyundai decided on a year-end dividend of 8,400 won per share for 2023. The annual dividend for 2023 was set at 11,400 won per share, a 63% increase from the previous year, including a total dividend of 3,000 won for the second and third quarters (1,500 won per quarter). This is the highest annual dividend amount in the company’s history.

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