[News] Hyundai Achieves Remarkable Q3 2023 Financial Results and Sets New Highs in EV Performance

2023-10-27 Emerging Technologies editor

Under strong government support, South Korean automakers are making remarkable strides in the global automotive market. Hyundai Motor, the largest car manufacturer in South Korea, reported a significant surge in its third-quarter operating profit, doubling year-on-year, primarily fueled by the robust sales of high-profit SUVs and EVs.

According to reports from news outlets such as Yonhap News Agency, Hyundai Motor announced its financial results on October 26, 2023. In the third quarter of 2023, the company witnessed an 8.7% year-on-year increase in revenue, reaching 41 trillion Korean won. Furthermore, the operating profit soared to 3.8 trillion Korean won (approximately 2.8 billion USD), marking a remarkable 146.3% increase compared to the same period last year. These results exceeded market expectations of 3.62 trillion Korean won and set a historic high for the same period.

In the midst of a semiconductor industry downturn, long-standing economic leader Samsung Electronics has faced operational setbacks. In contrast, Hyundai Motor has thrived as South Korean automakers dominate the global automotive market, securing its position as South Korea’s most profitable company for three consecutive quarters and causing a shift in rankings.

In terms of sales volume, Hyundai Motor sold 1.05 million vehicles globally in the third quarter, marking a 2% year-on-year growth. Notably, the company’s focus on expanding its EV product lineup, including the introduction of the IONIQ, resulted in a significant 33.3% increase in global sales of eco-friendly vehicles, reaching 169,000 units.

The luxury brand under Hyundai Motor, Genesis, achieved a 5.1% share of total sales in the third quarter, an increase from 4.9% in the same period last year. SUVs, known for their profitability, accounted for 54.7% of total sales in the third quarter (excluding Genesis), up from 50.6% in the previous year. When including Genesis SUV models, this figure rises to 57.8%.

Amid growing tensions in the Middle East and globally sustained high-interest rates, notable figures like Elon Musk of Tesla and giants like General Motors have warned of potential weak consumer demand for EVs in 2024. Nevertheless, Hyundai Motor’s Vice President, Seo Gang-hyun, has affirmed that the company’s $5 billion investment plan to establish a factory in Georgia is proceeding as planned and is set to commence production in the first half of 2024, six months ahead of the initial schedule.

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(Image credit: Hyundai’s Facebook)