Hyundai sold off $30bn in EV and luxury

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Hyundai Motor Co. has reported strong financial results for the third quarter, exceeding the expectations of analysts. The company’s revenue reached $30 billion, driven by strong sales of luxury vehicles and electric cars. In the three months ending in September, Hyundai’s consolidated operating profit saw an impressive surge of 146% compared to the previous year, reaching approximately $2.8 billion (3.8 trillion won). This performance comfortably outperformed the mean estimate of 3.6 trillion won predicted by 24 analysts.

Sales growth was a significant factor, with Hyundai experiencing an 8.7% increase in sales, reaching a total of $30.1 billion (41 trillion won). The company’s strong commitment to electric vehicles was evident as they managed to sell nearly 169,000 electrified models during this period, marking a remarkable year-on-year increase of over 33%. Hyundai’s dedication to electric vehicles is further underscored by its plans to introduce a range of new EV models globally, including the Kona EV, Genesis GV60, Electrified G80, GV70, and the Ioniq 6.

Hyundai’s global vehicle sales reached a milestone of 1.04 million units during the quarter, with a 2% increase in international sales. This growth was primarily driven by robust demand in regions such as North America, Europe, and India. However, it’s worth noting that sales in the Chinese market experienced a 33% decline.

Despite global uncertainties related to factors like geopolitical tensions, fluctuations in interest rates, and rising inflation, Hyundai remains optimistic about its sales momentum. Their strong quarterly performance was underpinned by luxury models, including popular offerings from the Genesis brand and sport-utility vehicles, which accounted for nearly 60% of total sales. Battery-powered vehicles constituted 6.3% of the sales mix.

In a move to reward its shareholders, Hyundai also announced a cash payout of 1,500 won (approximately $1.1) per share. Additionally, the report highlighted that the Korean won had depreciated by approximately 2.4% against the U.S. dollar during the quarter.

Hyundai’s strong performance in the luxury and electric vehicle segments, along with their strategic plans to expand their electric vehicle portfolio, positions the company favourably in the competitive automotive market. Despite challenges in various markets and global uncertainties, Hyundai’s robust sales in key regions and their commitment to electric vehicles continue to drive their success.