Hyundai, Kia expect auto sales jump in 2022 amid chip shortage

South Korea's Hyundai Motor and affiliate Kia Corp on Monday forecast that their mixed international gross sales will bounce 12.1 per cent in 2022, whilst final 12 months's gross sales fell wanting goal on account of a world chip scarcity.

The businesses offered 6.67 million automobiles in 2021, about 3.7 per cent lower than their mixed goal of 6.92 million automobiles, largely on account of provide issues together with the chip scarcity, which drove down car cargo.

They stated they might goal international gross sales of seven.47 million automobiles this 12 months.

"In 2022, Hyundai Motor plans to develop its market share and strengthen profitability by way of efforts to stabilise chip provide and demand, modify car manufacturing schedules, strengthen electrical car lineups in addition to optimising gross sales revenue and loss by area," Hyundai Motor stated in an announcement.

The scarcity, on account of provide issues and a surge in demand for shopper electrical devices in the course of the pandemic, has hit the auto trade laborious, with tens of millions of automobiles worldwide not being produced as a result of necessary components are lacking.

Analysts stated this 12 months's goal appeared cheap.

Lee Jae-il, an analyst at Eugene Funding & Securities, anticipated demand for automobiles to remain robust in 2022, underpinned by pent-up demand from customers unable to purchase automobiles final 12 months on account of provide shortages.

"It seems that the chip scarcity has been displaying some indicators of easing ... nonetheless, rising uncooked materials costs would probably have (an) affect on their profitability," Lee added.

Shares in Hyundai Motor closed 0.7 per cent increased, versus a 0.4 per cent rise within the benchmark market KOSPI.

In October, Hyundai Motor lower its 2021 international gross sales goal by about 4% to 4 million automobiles from 4.16 million automobiles.

Post a Comment

Previous Post Next Post