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Hyundai Motor Reports Strong Q2 Earnings, Raises Growth Targets


Hyundai Motor has announced impressive second-quarter earnings, which have led to an upward revision of its growth targets for 2023. During the April-June period, the company saw a net profit of 3.347 trillion won ($2.62 billion), marking an 8.5% increase compared to the same period last year. This exceeded the consensus forecast of 3.038 trillion won and was attributed to robust car sales and a focus on higher-end models.

Revenue for the quarter rose by 17% year-on-year to 42.250 trillion won, while operating profit jumped by 42% to a new quarterly record of 4.238 trillion won. These better-than-expected results have prompted Hyundai Motor to raise its annual targets for revenue and operating profit margin to up to 15% and 9% respectively for 2023, up from previous targets of 11.5% and 7.5%.

In the first half of this year, Hyundai’s total vehicle sales globally increased by 10.8% compared to the same period in 2020, surpassing 2 million units. This achievement has propelled the company, along with its subsidiary Kia, to the fourth spot in U.S. sales, overtaking Stellantis.

Revenue for the first half of the year rose by 21% to 80.028 trillion won, resulting in an operating profit of 7.831 trillion won and a net profit of 6.766 trillion won. Hyundai Motor attributes these encouraging figures to the stabilization of raw material costs, favorable foreign exchange conditions, and an improved product mix that emphasizes higher-end vehicles, including electric vehicles (EVs).

Looking ahead, Hyundai Motor is preparing for its electric-vehicle battery joint ventures that would enable its EVs to qualify for U.S. tax credits under the Inflation Reduction Act. In partnership with South Korean battery maker SK On, the company plans to invest $5 billion to build a battery cell production plant in Georgia. Additionally, Hyundai Motor’s own EV plant, also in Georgia, is scheduled to commence production in the first half of 2025, targeting an annual output of approximately 300,000 cars.

With ambitions to become a leader in the electric-vehicle market, Hyundai Motor has set a sales target of 2 million EV units by 2030.

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