Hyundai Motor, in a departure from the recent trend of other automakers reducing electric vehicle (EV) production, affirmed its unwavering commitment to its EV roadmap and expressed optimism regarding growth prospects for the current year. While the EV market has experienced substantial growth, it has not quite reached the levels initially projected due to the hindrance of elevated interest rates affecting consumer demand. Seo Gang Hyun, an executive vice president at the South Korean automaker, conveyed during an earnings briefing for analysts that they have no intentions of significantly scaling back EV production or the EV lineup in response to foreseeable short-term challenges. The company firmly believes in the long-term growth potential of EV sales.
Hyundai Motor Group, an umbrella encompassing Hyundai, Kia, and Genesis brands, disclosed its ambitious plans to introduce 31 EV models by 2030, among which is the forthcoming Ioniq 7 SUV scheduled for next year. Seo indicated that Hyundai's EV sales projection for the upcoming year might undergo a slight adjustment, yet the automaker remains flexible enough to enhance the production of gasoline-engine vehicles should market demand pivot in that direction. The overall sales outlook is not anticipated to be substantially impacted.
In the third quarter, Hyundai reported a net profit of 3.2 trillion won ($2.4 billion), exceeding its year-ago figures by more than twofold and surpassing LSEG SmartEstimates, which had forecasted 2.9 trillion won. Hyundai's performance was also bolstered by favorable exchange rates. Sales exhibited an uptick, rising by 8.7%, reaching 41 trillion won, primarily driven by strong consumer demand for high-margin gasoline SUVs. Notably, sales of EVs and hybrids surged by a third, totaling 169,000 units.
Recent times have witnessed several somber announcements within the EV sector. General Motors, citing plateauing demand for EVs, postponed production of Chevrolet Silverado and GMC Sierra electric pickup trucks in a Michigan-based plant by a year. Ford, likewise, temporarily scaled down production at the facility responsible for the electric F-150 Lightning pickup truck. Tesla, too, has altered its plans for a factory in Mexico. Furthermore, GM and Honda jointly announced the discontinuation of their $5 billion initiative to develop cost-effective EVs. Following Hyundai Motor's earnings report, its shares saw a decline of 1.4%, outperforming the benchmark KOSPI's 2.7% drop.
