sol: Hyundai Motor’s first-quarter net profit jumped 17 percent from a year ago and a weaker currency (Won) helped offset the impact of the chip shortage. Hyundai Motor has given this information on Monday. Net profit rose to 1.78 trillion won ($1.42 billion) for the quarter ended March, from 1.52 trillion won a year ago, the company said in a statement.
“Increased sales of high-end SUV models, favorable exchange rates and lower inventory levels helped offset the impact of global chip shortages and higher raw material prices,” the statement said.
According to a Yonhap news agency report, Hyundai expects short supply of parts due to the lockdown in Shanghai and high raw material costs due to the Russo-Ukraine war to remain major woes for carmakers in the second quarter.
“Despite the uncertainties of the global market, the company will continue to do well this year by taking a number of measures,” said Seo Gang-hyun, executive vice president of Hyundai’s finance and accounting division, in the company’s earnings conference call.
In 2022, Hyundai aims to sell 4.32 million vehicles, up 10 percent from 3.89 million units sold a year ago.
Carmakers like Sonata and Palisade SUV plan to increase sales in the US and focus on selling eco-friendly cars in Europe.
In the US, Hyundai plans to gradually launch three electric models (GV60 SUV, G80 sedan and GV70 SUV) this year.
Analysts expect lower inventory levels and the launch of vehicles on Hyundai Motor Group’s EV-only electric-global modular platform (e-GMP) to drive earnings growth in Q3.
The e-GMP models include the IONIQ 5 and IONIQ 6 sedans launched last year and the IONIQ 7 SUV, which are slated to release this year and 2024, respectively.
But rising prices of lithium, nickel and cobalt, key materials needed to make car batteries, will drive up the manufacturing cost of electric vehicles.
Hyundai said it would buy more car batteries in advance through partnerships with battery makers to lessen the impact of rising prices on earnings.
first published:April 25, 2022, 5:46 p.m.
