Luxury Cars, EVs To Fuel Hyundai's China, U.S. Sales In 2021; Fourth-Quarter Profit Surges
By Carandbike Team
1 mins read
Published on January 26, 2021
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 about an electric car and battery tie-up.
On sales, the automaker said it expects a 12% jump in its top 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 QUARTER SINCE 2017
In the fourth quarter, Hyundai earned 1.3 trillion won ($1.18 billion), the best 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, and North America is Hyundai's biggest market.
Hyundai shares, up more than a third this month led by news of the Apple tie-up, fell some 3% on Tuesday.
The broader KOSPI was down 2%.
Quarterly revenue rose 5% to 29.2 trillion won for Hyundai, which saw solid demand for its cars in the United States as well as 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."
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Great Deals on Used CarsView All Used Cars
- 41,489 km
- 75,000 km
- 1,18,054 km
- 22,376 km
- 47,549 km
- 76,000 km
- 76,000 km
- 62,500 km
- 81,000 km
- 85,000 km
Popular Hyundai Models
-18789 second ago
Jawa Yezdi motorcycles is holding a mega service camp in Cochin, Kerala from December 14-17 for owners to get free check-ups
-17137 second ago
American-owned Trackhouse, led by Justin Marks and musician Pitbull, to replace RNF on the starting grid for 2024.
-15596 second ago
Porsche AG’s Leipzig plant rolled out its two millionth vehicle recently, a new-gen Panamera Turbo E-Hybrid, which is now heading to its owner in Dubai
-13159 second ago
The Toyota Supra GT4 100th Edition Tribute will be limited to just 100 units and get a new GR Supra GT4 Evo racecar-inspired livery along with Gazoo Racing accessories
11 hours ago
The new video shows the subcompact SUV’s redesigned tail section and confirms that it will get ADAS functions
12 hours ago
The Mercedes-AMG CLE 53 4MATIC+ Coupe has an upgraded 3.0-litre inline six-cylinder turbo engine producing 442 bhp and 560 Nm torque.
14 hours ago
The Swift will be powered by a 1.2 litre, 3-cylinder petrol engine that puts out 81 bhp and 108 Nm of torque
15 hours ago
The Revuelto is powered by a 6.5 litre V12 engine mated to three electric motors that churn out a combined 1001 bhp
16 hours ago
Kia India takes the wraps off its new EV charging initiative, the K-Charge. It will be available to non-Kia EV owners as well.
16 hours ago
Milestone was reached about 7 years after the plant commenced operations in February 2017.
2 days ago
Images of the next-generation Hyundai i20 have recently surfaced online, and this time around a couple of prototypes of the car have been spotted testing in India. Unlike the previously seen spy photos of the new-gen Hyundai i20, which features alloy wheels, the cars in these latest images are running on steel wheels with hub caps, but we do get a much closer look at the front section of the car.
5 days ago
New tech moves the EV's reduction gear into the wheel hub allowing for more compact electric motors and greater space efficiency
14 days ago
Hyundai is preparing to launch the Ioniq 7, the newest addition to its electric vehicle lineup, following the success of the Ioniq 5 and Ioniq 6 models
15 days ago
Under this initiative, Hyundai states that all its dealerships across India will be wheelchair-accessible by February 2024
15 days ago
Hyundai has done away with the dual-cowl design of the cabin with the facelifted SUV getting a more conventional dashboard design.