Kia and Hyundai expect car sales growth in 2023
2023.01.03 10:12
Kia and Hyundai expect car sales growth in 2023
Budrigannews.com – Despite the fact that last year’s sales fell short of expectations due to disruptions in the supply chain, South Korean Hyundai Motor Co. and its affiliate Kia Corp. predicted on Tuesday that their combined global sales would rise by nearly 10% in 2023.
The companies sold 6.85 million vehicles in 2022, which was about 4 percent less than their combined target of 7.16 million vehicles. This was primarily attributable to issues such as a shortage of chips and components.
They said they wanted to sell 7.52 million cars worldwide this year.
“By flexibly responding to market changes, accelerating its transition to electrification, responding to global environmental regulations, and optimizing production, logistics, and sales by region,” Hyundai Motor stated in a statement, “Hyundai plans to expand market share and operate businesses oriented toward profitability.”
Given the lingering demand for automobiles, analysts stated that the two companies’ sales targets for this year appear ambitious but doable.
According to analyst Kim Gwi-yeon of Daishin Securities, “Hyundai Motor 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.”
Kim, on the other hand, said that economic obstacles like high interest rates could slow car sales, especially in the second half of the year when demand that had been building up slows down.
Compared to a decrease of 0.3 percent in the benchmark market, shares of Hyundai Motor and Kia closed up 1.3 percent and 1.5 percent, respectively.
Hyundai Motor lowered its 2022 global sales target from 4.32 million vehicles to 4.01 million vehicles in October.
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