© Reuters. FILE PHOTO: A store signal of Hyundai is seen exterior a automotive showroom in Milton Keynes, Britain
By Heekyong Yang and Joyce Lee
SEOUL (Reuters) – Hyundai Motor Co 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 automobiles (SUVs), after reporting its finest quarterly revenue in over three years.
Hyundai’s holiday-quarter revenue jumped 57% on extra demand for premium-margin SUVs, however total gross sales volumes fell 5% amid a broader financial weak spot because of the COVID-19 pandemic.
The promising outlook is a testomony to Hyundai’s massive electrical car (EV) push. The corporate, which along with affiliate Kia Corp is among the many world’s high 10 automakers, is quickly anticipated to introduce an EV-only platform that can use its personal battery expertise to chop time and prices.
Hyundai, nonetheless, didn’t present on its earnings name any replace on just lately reported talks between it and Apple Inc (NASDAQ:) about an electrical automotive and battery tie-up.
On gross sales, the automaker mentioned it expects a 12% bounce in its largest 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 goal 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 anticipate a lift to Hyundai’s EV gross sales this yr regardless of a world recall of Kona Electrical resulting from fires.
Hyundai mentioned it expects gross sales to leap 28% in China, the world’s high automotive 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 speedy restoration amid the pandemic … Hyundai’s China technique appears to concentrate on electrical automobiles,” mentioned Lee Han-joon, an analyst at KTB Funding & Securities.
Hyundai expects to promote 562,000 automobiles in China in 2021, and estimates gross sales in North America will bounce to 909,000.
BEST (NYSE:) QUARTER SINCE 2017
Within the fourth quarter, Hyundai earned 1.3 trillion gained ($1.18 billion), the best since at the very least early 2017.
Nevertheless it fell in need of a median analyst estimate of 1.5 trillion gained, compiled by Refinitiv, resulting from a powerful gained.
The South Korean foreign money rose about 7% in opposition to the greenback within the three months to December. A stronger gained erodes the worth of abroad gross sales for South Korean corporations.
Hyundai shares, up greater than a 3rd this month led by information of the Apple tie-up, fell about 3% on Tuesday.
The broader was down 2%.
Hyundai’s quarterly income rose 5% to 29.2 trillion gained because it noticed stable demand for its automobiles in america and rising markets resembling India regardless of the pandemic.
Whereas demand for its automobiles from car-rental corporations that buy in bulk remains to be tepid, analysts mentioned, gross sales of its luxurious automobiles are anticipated to stay a brilliant spot.
Hyundai had delivered a loss within the October quarter because it provisioned for an enormous engine-quality associated invoice.
“Hyundai had a great fourth quarter, particularly in america, the place larger 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 effectively.”