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Hyundai Motor fourth-quarter profit jumps 57% on query for SUVs, Genesis

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

Hyundai’s vacation-quarter profit jumped 57% on extra query for prime class-margin SUVs, however total sales volumes fell 5% amid a broader economic weak point ensuing from the COVID-19 pandemic.

The promising outlook is a testomony to Hyundai’s colossal electric automobile (EV) push. The firm, which in conjunction with affiliate Kia Corp is amongst the sector’s top 10 automakers, is soon anticipated to introduce an EV-fully platform that can employ its dangle battery technology to within the gash worth of time and costs.

Hyundai, then all over again, did no longer provide on its earnings name any update on these days reported talks between it and Apple Inc about an electrical automobile and battery tie-up.

On sales, the automaker mentioned it expects a 12% bounce in its greatest market, North The United States, in 2021. Its sales within the fourth quarter ended December slipped 2% within the distance.

“With our lineup with new models ready to start within the US, we plot to extend our market fragment to 4.8% this year,” Senior Vice President Koo Za-yong mentioned on the decision.

Final year, the firm managed to slightly contrivance its U.S. market fragment to 4.4%, helped by sales of the Palisade SUV and Kona EV, he mentioned, in spite of a 10% drop in sales.

Analysts place a query to a favor to Hyundai’s EV sales this year in spite of a world possess of Kona Electric ensuing from fires.

Hyundai mentioned it expects sales to bounce 28% in China, the sector’s top automobile market the place it additionally plans to free up the electric version of its Mistra sedan this year.

FILE PHOTO: The wheel duvet of a Hyundai Genesis is seen at some level of the Chicago Auto Uncover February 11, 2009. REUTERS/John Gress

“Final year, Hyundai in most cases didn’t attain worthy in China, whereas assorted automakers launched new models because the Chinese auto market seen a rapid recovery amid the pandemic … Hyundai’s China approach appears to focal level on electric vehicles,” mentioned Lee Han-joon, an analyst at KTB Investment & Securities.

Hyundai expects to promote 562,000 vehicles in China in 2021, and estimates sales in North The United States will bounce to 909,000.

BEST QUARTER SINCE 2017

Within the fourth quarter, Hyundai earned 1.3 trillion acquired ($1.18 billion), the ultimate since on the least early 2017.

Alternatively it fell short of an moderate analyst estimate of 1.5 trillion acquired, compiled by Refinitiv, ensuing from a resounding acquired.

The South Korean currency rose about 7% towards the buck within the three months to December. A stronger acquired erodes the worth of in one more country sales for South Korean companies.

Hyundai shares, up extra than a Third this month led by data of the Apple tie-up, fell about 3% on Tuesday.

The broader KOSPI modified into down 2%.

Hyundai’s quarterly earnings rose 5% to 29.2 trillion acquired because it seen tough query for its vehicles within the US and emerging markets such as India in spite of the pandemic.

Whereas query for its vehicles from automobile-rental companies that favor in bulk remains to be tepid, analysts mentioned, sales of its luxurious vehicles are anticipated to remain a shiny space.

Hyundai had delivered a loss within the October quarter because it provisioned for a colossal engine-quality linked invoice.

“Hyundai had a simply fourth quarter, especially within the US, the place increased moderate-promoting-imprint vehicles such as SUVs seen increasing query as customers shun public transit thanks to COVID-19 and low gas prices,” KTB’s Lee mentioned.

“Holiday offers helped as effectively.”

Reporting by Heekyong Yang and Joyce Lee; Bettering by Sayantani Ghosh and Himani Sarkar

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