Hyundai Motor lifts full-year outlook as Q2 profit up 15%

financialexpress.com:

South Korea’s Hyundai Motor Co raised its annual sales and profit margin guidance on Wednesday, after recording a 15% rise in quarterly net profit helped by a weaker won currency, robust sales of electric vehicles (EVs) and increased production.

The world’s No.3 automaker by sales together with affiliate Kia Corp forecast 2023 revenue would grow 14-15%, up from its January guidance of 10.5-11.5%, while its operating profit margin was upwardly revised to a range of 8-9% from 6.5-7.5%.

“The company expects to strengthen sales momentum through production improvements as chip and component supplies stabilise worldwide … and enhance profitability despite global uncertainties such as interest rate fluctuations,” Hyundai said in a statement.

Its upbeat outlook comes amid growing concerns about cooling vehicle demand due to high interest rates and economic slowdown, with some of its rivals indicating price cuts to drive volume growth.

Tesla CEO Elon Musk signalled last week that it would cut prices again on EVs in “turbulent times” to boost sales.

Hyundai said vehicle sales rose 8.5% to 1.06 million units in the second quarter, with EV sales soaring 47% to nearly 78,000 units.

In the United States, Hyundai’s biggest market, sales of green energy cars that include EVs and plug-in hybrids more than doubled to 46,000 units. Sales climbed even though Hyundai’s EVs are not eligible for federal tax credits under the Inflation Reduction Act (IRA) as they do not meet requirements.

The IRA requires 50% of the value of battery components to be produced or assembled in North America to qualify for a $3,750 credit and 40% of the value of critical minerals sourced from the United States or a free trade partner for a separate $3,750 credit.

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