South Korean Auto Giants Hyundai and Kia Confident See 10% Sales Increase in 2023 Despite Supply Chain Disruptions

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Hyundai and its affiliate Kia are bullish about 2023, with the company expecting to make more sales than it did in the previous two years. The South Korean auto giant declared that their sales would jump 10% this year despite ongoing concerns about supply chain disruptions.

The two companies sold over 6.5 million units last year, falling short of their target by 4%. This deficit was largely due to a lack of computer chips and other parts. However, according to a statement by Hyundai, this year, the companies are targeting upwards of 7.5 million sales.

In addition, the company also said it would target an increase in market share as they transition to fully electric vehicles. The statement also included their plans to include different aspects of EV to respond to rapid market changes and run a profit-oriented business to cater to investors’ assets.

Analysts believe the company’s targets are aggressive but achievable when considering the stalled need for vehicles. According to Kim Gwi-Yeon, a Daishin Securities Co Ltd analyst, the company still receives many back orders, while the queues to buy cars are still piling up.

Kim believes the company’s confidence is reasonable and could board well with investors. However, the analyst says economic chaos and rising interest rates may slow sales, especially in the second half when bottled-up demand subsides.

Today, the stock prices of Hyundai Motor and Kia rose by 1.3% and 1.5%, respectively, while the overall stock market, measured by the KOSPI index, declined by 0.3%. These numbers mean investors are confident in the performance of these two automotive companies and are buying their shares, even as the overall market is not doing as well.

In October, Hyundai Motor announced that it was lowering its sales target for 2022 by 7%, from 4.3 million to 4 million vehicles. In addition, the company expects to sell slightly fewer vehicles this year than initially anticipated. However, investors are still optimistic about the prospects of Hyundai Motor and Kia despite this announcement.

About Hyundai and Kia

Hyundai and Kia are two South Korean automotive manufacturers that are part of the larger Hyundai Motor Group. Both companies are publicly traded and listed on the Seoul Stock Exchange in South Korea.

Hyundai’s stock symbol is 005380, while Kia’s stock symbol is 000270. Both firms have a strong presence in the global automotive market, with a wide range of vehicles, including sedans, SUVs, and hybrids.

Hyundai and Kia have invested significantly in electric and autonomous vehicle technology in recent years. The two companies expect to continue to focus on these areas in the coming year.

Both companies have faced some challenges in recent years, including increased competition and economic headwinds. Still, they remain leaders in the automotive industry and look prime for success in the future.

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