Hyundai, Kia expect sales to jump nearly 10% in 2023

SOUTH Korea’s Hyundai and its affiliate Kia forecast on Tuesday (Jan 3) that their combined global sales will jump nearly 10 per cent in 2023, even as last year’s sales fell short of target due to supply chain disruptions.

The companies sold 6.9 million vehicles in 2022, about 4 per cent less than their combined target of 7.2 million, largely due to problems including chip and component shortages.

They said they would target global sales of 7.5 million vehicles this year.

“Hyundai plans to expand market share and operate profitability-oriented businesses by flexibly responding to market changes, accelerating its transition to electrification, responding to global environmental regulations, and optimising production, logistics and sales by region,” it said.

Analysts said the sales targets of the two companies for this year appear to be aggressive but achievable, considering pent-up demand for vehicles.

“Hyundai and Kia are still seeing relatively higher back orders of vehicles, and car buyers are still waiting in line to buy cars despite the recent economic environment... With that demand in the picture, the companies appear to be confident,” said Kim Gwi-yeon, an analyst at Daishin Securities.

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Kim, however, added that economic obstacles such as high interest rates could dampen car sales, especially in the second half of the year after pent-up demand softens.

Shares of Hyundai and Kia closed up 1.3 per cent and 1.5 per cent respectively, versus a 0.3 per cent fall in the benchmark market Kospi.

In October, Hyundai cut its 2022 global sales target by about 7 per cent to four million vehicles from 4.32 million vehicles. REUTERS