Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Luxury cars, EVs to fuel Hyundai's China, U.S. sales in 2021; Q4 profit jumps

Stock MarketsJan 26, 2021 04:45AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A shop sign of Hyundai is seen outside a car showroom in Milton Keynes, Britain 2/2

By Heekyong Yang and Joyce Lee

SEOUL (Reuters) - Hyundai Motor Co said on Tuesday it expects sales in United States and China to surge this year, driven by the launch of new electric cars and sports utility vehicles (SUVs), after reporting its best quarterly profit in over three years.

Hyundai's holiday-quarter profit jumped 57% on more demand for premium-margin SUVs, but overall sales volumes fell 5% amid a broader economic weakness due to the COVID-19 pandemic.

The promising outlook is a testament to Hyundai's big electric vehicle (EV) push. The company, which together with affiliate Kia Corp is among the world's top 10 automakers, is soon expected to introduce an EV-only platform that will use its own battery technology to cut time and costs.

Hyundai, however, did not provide on its earnings call any update on recently reported talks between it and Apple Inc (NASDAQ:AAPL) about an electric car and battery tie-up.

On sales, the automaker said it expects a 12% jump in its biggest market, North America, in 2021. Its sales in the fourth quarter ended December slipped 2% in the region.

"With our lineup with new models ready to launch in the United States, we aim to increase our market share to 4.8% this year," Senior Vice President Koo Za-yong said on the call.

Last year, the company managed to slightly advance its U.S. market share to 4.4%, helped by sales of the Palisade SUV and Kona EV, he said, despite a 10% fall in sales.

Analysts expect a boost to Hyundai's EV sales this year despite a global recall of Kona Electric due to fires.

Hyundai said it expects sales to jump 28% in China, the world's top car market where it also plans to release the electric version of its Mistra sedan this year.

"Last year, Hyundai basically didn't do much in China, while other automakers launched new models as the Chinese auto market saw a rapid recovery amid the pandemic ... Hyundai's China strategy seems to focus on electric cars," said Lee Han-joon, an analyst at KTB Investment & Securities.

Hyundai expects to sell 562,000 vehicles in China in 2021, and estimates sales in North America will jump to 909,000.

BEST (NYSE:BEST) QUARTER SINCE 2017

In the fourth quarter, Hyundai earned 1.3 trillion won ($1.18 billion), the highest since at least early 2017.

But it fell short of an average analyst estimate of 1.5 trillion won, compiled by Refinitiv, due to a strong won.

The South Korean currency rose about 7% against the dollar in the three months to December. A stronger won erodes the value of overseas sales for South Korean companies.

Hyundai shares, up more than a third this month led by news of the Apple tie-up, fell about 3% on Tuesday.

The broader KOSPI was down 2%.

Hyundai's quarterly revenue rose 5% to 29.2 trillion won as it saw solid demand for its cars in the United States and emerging markets such as India despite the pandemic.

While demand for its vehicles from car-rental companies that purchase in bulk is still tepid, analysts said, sales of its luxury cars are expected to remain a bright spot.

Hyundai had delivered a loss in the October quarter as it provisioned for a big engine-quality related bill.

"Hyundai had a good fourth quarter, especially in the United States, where higher average-selling-price cars such as SUVs saw increasing demand as consumers shun public transit because of COVID-19 and low gasoline prices," KTB's Lee said.

"Holiday deals helped as well."

Luxury cars, EVs to fuel Hyundai's China, U.S. sales in 2021; Q4 profit jumps
 

Related Articles

Airline easyJet cancels more than 200 flights
Airline easyJet cancels more than 200 flights By Reuters - May 28, 2022 3

LONDON (Reuters) - Low-cost carrier easyJet (LON:EZJ) is to cancel more than 200 flights over the next 10 days due to airport delays and other restrictions, disrupting travel...

China's first residential REITs to be launched
China's first residential REITs to be launched By Reuters - May 28, 2022

SHANGHAI (Reuters) - China's first public real estate investment trusts (REITs) based on residential properties will be launched soon, as regulators step up efforts to channel...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email