SEOUL — Hyundai mentioned on Tuesday it expects gross sales in United States and China to surge this yr, pushed by the launch of latest electrical automobiles and sports activities utility autos, after reporting its greatest quarterly revenue in over three years.
Hyundai’s holiday-quarter revenue jumped 57% on extra demand for near-premium SUVs with massive margins, however total gross sales volumes fell 5% amid a broader financial weak point as a result of COVID-19 pandemic.
The promising outlook is a testomony to Hyundai’s massive electrical automobile push. The corporate, which along with affiliate Kia is among the many world’s high 10 automakers, is quickly anticipated to introduce an EV-only platform that can use its personal battery know-how to chop time and prices.
Hyundai, nevertheless, didn’t present on its earnings name any replace on just lately reported talks between it and Apple about an electrical automobile and battery tie-up.
On gross sales, the automaker mentioned it expects a 12% bounce in its greatest market, North America, in 2021. Its gross sales within the fourth quarter ended December slipped 2% within the area.
“With our lineup with new fashions able to launch in america, we purpose to extend our market share to 4.8% this yr,” Senior Vice President Koo Za-yong mentioned on the decision.
Final yr, the corporate managed to barely advance its U.S. market share to 4.4%, helped by gross sales of the Palisade SUV and Kona EV, he mentioned, regardless of a ten% fall in gross sales.
Analysts count on a lift to Hyundai’s EV gross sales this yr regardless of a worldwide recall of Kona Electrical as a result of fires.
Hyundai mentioned it expects gross sales to leap 28% in China, the world’s high automobile market the place it additionally plans to launch the electrical model of its Mistra sedan this yr.
“Final yr, Hyundai principally did not do a lot in China, whereas different automakers launched new fashions because the Chinese language auto market noticed a fast restoration amid the pandemic … Hyundai’s China technique appears to give attention to electrical automobiles,” mentioned Lee Han-joon, an analyst at KTB Funding & Securities.
Hyundai expects to promote 562,000 autos in China in 2021, and estimates gross sales in North America will bounce to 909,000.
Finest quarter since 2017
Within the fourth quarter, Hyundai earned 1.3 trillion gained ($1.18 billion), the best since not less than early 2017.
But it surely fell wanting a mean analyst estimate of 1.5 trillion gained, compiled by Refinitiv, as a result of a robust gained.
The South Korean foreign money rose about 7% towards the greenback within the three months to December. A stronger gained erodes the worth of abroad gross sales for South Korean firms.
Hyundai shares, up greater than a 3rd this month led by information of the Apple tie-up, fell about 3% on Tuesday.
The broader KOSPI was down 2%.
Hyundai’s quarterly income rose 5% to 29.2 trillion gained because it noticed strong demand for its automobiles in america and rising markets resembling India regardless of the pandemic.
Whereas demand for its autos from car-rental firms that buy in bulk continues to be tepid, analysts mentioned, gross sales of its luxurious automobiles are anticipated to stay a shiny spot.
Hyundai had delivered a loss within the October quarter because it provisioned for a giant engine-quality associated invoice.
“Hyundai had a superb fourth quarter, particularly in america, the place increased average-selling-price automobiles resembling SUVs noticed rising demand as shoppers shun public transit due to COVID-19 and low gasoline costs,” KTB’s Lee mentioned.
“Vacation offers helped as properly.”
