South Korean automaker Hyundai Motor Co and its affiliate Kia Corp forecast that their combined global sales this year will rise about 2%, even though they fell short of their target last year. The duo sold 7.3 million vehicles in 2023, about 3% less than their combined target of 7.52 million. They attributed this to difficult economic environment such as rising interest rates and inflation that pushed vehicles out of the reach of some buyers.
In 2023, Kia sold 3.09 million vehicles globally, posting a new annual global sales record. The company’s previous best yearly performance was in 2014, with sales of 3.04 million units. This year, both the companies are targeting a combined global sales of 7.44 million vehicles. As per analysts, the sales targets for the two companies this year appears to be achievable, but that economic issues, including high interest rates, as well as rising incentives would have an impact on auto demand and profitability.
Individually, Hyundai is aiming for a 0.6% rise in annual global sales to 4.24 million vehicles, while Kia has set its sales target at 3.2 million units, up about 4% from last year. “It seems that Hyundai’s goal appears to be more conservative than Kia’s … Kia is set to launch new electric vehicles this year, but we need to factor in how the recent slowing growth of global EV sales would fold out,” Shin Yoon-chul, an analyst at Kiwoom Securities, told Reuters.
Hyundai plans to prioritize electrification of its vehicles, taking a lead in the segment. The company said that it plans to optimize profitability by strengthening its global electric vehicle (EV) production infrastructure, establishing flexible business strategies to adapt to market changes, and reinforcing preemptive risk management capabilities.
Hyundai Motor Group Executive Chair Euisun Chung in his New Year address emphasized on customer satisfaction and called for a corporate culture of “preparation” to make swift decisions. “The best strategy is earning the full trust of our customers, not quickly following our competitors … In order to turn these external challenges into opportunities and achieve long-term sustainable growth, we must be prepared,” Chung said in the address.