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Hyundai Motor says it should proceed to prioritise manufacturing of higher-profit SUVs and luxurious fashions amid ongoing market volatility and disruptions.
The corporate this week introduced its quarter three enterprise outcomes, headlined by 30 per cent income progress and 14 per cent gross sales progress. Web revenue dipped, however because of “one-off quality-related guarantee provisions” versus a leaner product combine.
Hyundai’s EV mannequin gross sales additionally surged about 27 per cent from Q3 a yr earlier to round 52,000 items, equal to five.1 p.c of its complete gross sales quantity.
Nonetheless, the corporate readjusted its annual world gross sales estimate to 4.01 million items from 4.32 million items, as “unstable provide chain circumstances across the globe proceed to weigh on manufacturing”.
“Whereas Hyundai Motor expects a gradual restoration from world chip and element shortages within the fourth quarter, the corporate anticipates exterior uncertainties to proceed, together with inflation, provide chain disruption and fluctuation in uncooked materials costs because of geopolitical points,” the corporate added.
“As well as, the corporate expects foreign money fee volatility in addition to rising advertising and marketing prices because of fiercer competitors amongst automakers as a burden for the remainder of this yr.”
Hyundai mentioned that its fundamental coping mechanism could be to “deal with the restoration of gross sales by way of an optimised production-sales plan in world operations that can improve its product combine with SUVs and luxurious fashions to safe strong profitability”.
Strip out the company waffle and this implies Hyundai will prioritise its vehicles with the very best revenue margins, pointing to any shortages affecting cheaper automobiles.
This tactic is one mirrored by Kia, which likewise posted good income and gross sales progress over Q3, plus retail gross sales of its BEV fashions totalling 40,000 items, a 34.3 per cent improve.
“Kia plans to proceed increasing gross sales of electrified fashions with aggressive fashions such because the EV6 and in addition deal with excessive margin SUV fashions with a purpose to improve profitability,” the corporate mentioned.
“Moreover, the corporate will proceed enhancing the product and trim combine in keeping with Kia’s enhanced model notion,” it added – suggesting a deal with top-of-the-range fashions, which may doubtlessly be excellent news for these on EV6 and Sorento wait lists…
MORE: Kia’s speedy progress tracked, because it overtakes Hyundai in Australia
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