![Hyundai Motor Group executive chairman Jung Eui-sung speaks during a meeting with employees at the company's research center in Namyang, Gyeonggi Province, Jan. 3. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2023/01/26/ab3e20a9-6c1e-45ba-926a-23326bcfd6d8.jpg)
Hyundai Motor Group executive chairman Jung Eui-sung speaks during a meeting with employees at the company’s research center in Namyang, Gyeonggi Province, Jan. 3. [YONHAP]
Hyundai Motor’s 2022 net profit jumped 40.2%. This is due to strong sales of high-margin SUV models and a weaker local currency.
Achieved record highs in annual sales and operating income.
Last year’s net profit was 7.98 trillion won ($6.45 billion), up 40.2% year-on-year, but fell short of the market consensus of 8.87 trillion won compiled by FnGuide.
Annual sales increased 21.2% year-on-year to KRW 142.5 trillion, in line with market expectations.
Operating profit rose 47% to KRW 9.8 trillion, beating analysts’ expectations of KRW 9.5 trillion.
“High-end Genesis cars and SUVs, as well as electric vehicles, are selling well. [EVs]helped boost our revenue,” Seo Gang-hyun, executive vice president of finance and accounting, said in an online conference call on Thursday.
Hyundai Motor sold 3.9 million vehicles last year, of which 51.5% were SUVs. In 2021, SUVs accounted for 47.3% of his total sales.
Genesis cars, Hyundai’s premium brand, accounted for 5.3%.
Sales of environmentally friendly vehicles, including hybrids, increased by 19.7% to 505,000 units.
Net profit in the fourth quarter reached KRW 1.7 trillion, up 143.8%. Sales increased by 24.2% to KRW 38.5 trillion and operating profit increased by 119.6% to KRW 3.4 trillion.
Domestic sales in the fourth quarter increased by 3.3% thanks to the latest Grandeur sedan and Genesis vehicles. The latest Ioniq 6 EV boosted his international sales by 9.3%.
Seo explained that the problem of semiconductor shortages has improved and production is increasing.
Hyundai Motor wants to sell about 4.32 million cars worldwide this year. The goal is for 330,000 of those to be pure EVs, up 54% from last year.
“Economic uncertainty remains, but we are committed to maintaining profitability by expanding sales of EVs such as the Ioniq 6 and Kona and high-margin SUVs such as the all-new Santa Fe. Hyundai Motor Company.
When asked about its plans to respond to the U.S. Inflation Act (IRA), Seo said Hyundai would expand its EV leasing program.
“Currently, only 5% of EVs are sold under leasing programs in the US,” added Seo. “We want to increase this to 30% or more.”
In late December, the U.S. Treasury Department released “additional information” regarding clean vehicle regulations under the IRA. This indicates that the purchaser of a commercial clean vehicle acquired for taxpayer use or lease and not for resale is eligible to claim the $7,500 tax credit. .
South Korean automakers also announced plans to invest 10.5 trillion won this year to bolster their EV business.
About 4.2 trillion won will be spent on research and development of next-generation technologies, and 5.6 trillion won will be spent on new infrastructure such as the Georgia factory.
Hyundai’s Georgia plant plans to start mass production in 2025.
Kia Motors will release its 2022 earnings on Friday.
Sarah Chi [chea.sarah@joongang.co.kr]
