SEOUL — Hyundai Motor stated on Thursday it could not delay plans to roll out new electrical automobiles and was upbeat about prospects for continued development this yr — a distinction to latest steps by rivals to chop again on EV output.
Electrical automobile gross sales are rising strongly however not as a lot as carmakers had forecast, with demand hit by excessive rates of interest.
“We don’t plan to dramatically cut back EV manufacturing or our line-up attributable to doubtless near-term hurdles as we imagine EV gross sales will develop long term,” Search engine optimization Gang Hyun, an govt vp on the South Korean automaker, advised an earnings briefing for analysts.
The Hyundai Motor Group, which encompasses the Hyundai, Kia and Genesis manufacturers, stated in April it plans to launch 31 EVs by 2030. This contains the launch of the Ioniq 7 SUV subsequent yr.
Search engine optimization stated Hyundai’s EV gross sales subsequent yr may very well be barely decrease than beforehand anticipated, however the automaker had the manufacturing flexibility to spice up output of gasoline engine automobiles if demand shifted that manner and he didn’t anticipate a major affect on total gross sales.
When requested concerning the affect on Hyundai Motor of the United Auto Employees (UAW) union reaching a tentative labour cope with Ford, Search engine optimization stated the corporate expects the deal will have an effect on wage will increase at its U.S. factories, however such prices may very well be lined because the automaker has been placing effort into decreasing prices, equivalent to in logistics.
Hyundai Motor, which isn’t a member of the UAW, operates an meeting plant in Alabama and is constructing a manufacturing unit to provide EVs in Georgia.
For the third quarter, Hyundai booked a internet revenue of three.2 trillion received ($2.4 billion), greater than double its year-earlier end result and beating an LSEG SmartEstimate of two.9 trillion received, with the automaker helped by a beneficial alternate charge.
Gross sales additionally elevated, climbing 8.7% to 41 trillion received on strong demand for high-margin gasoline SUVs. Gross sales of EVs and hybrids additionally grew, up by a 3rd to 169,000 items.
This month has seen a flurry of downbeat EV bulletins.
Citing flattening demand for EVs, GM stated it could delay manufacturing by a yr of Chevrolet Silverado and GMC Sierra electrical pickup vehicles at a plant in Michigan. Ford is quickly reducing one in every of three shifts on the plant that builds its electrical F-150 Lightning pickup truck.
Tesla can also be slowing plans for a Mexico manufacturing unit, whereas GM and Honda introduced on Wednesday that they have been ending a $5 billion plan to develop lower-cost EVs collectively.
Shares of Hyundai Motor closed down 1.4% after it reported earnings, outperforming a 2.7% decline for the benchmark KOSPI.
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