Hyundai Motor and Kia are experiencing a noticeable disparity in performance. Hyundai has lowered its annual targets due to production disruptions, while Kia is thriving with strong sales of eco-friendly vehicles. There are even forecasts suggesting a potential shift in annual performance dominance between the two companies, with year-end production normalization and the impact of new models being key factors.
According to industry reports on October 30, Hyundai's operating profit in the third quarter surpassed Kia's by 858.9 billion won. This marks a reduction of about 20% compared to the same period last year, when the gap was 1.075 trillion won.
This shift is attributed to changing sales trends between Hyundai and Kia. Hyundai has recently faced sluggish sales in both domestic and international markets. From January to September this year, global sales totaled 2,886,763 units, a 7.0% decrease from the same period last year, with declines of 16.3% in the domestic market and 5.1% overseas.
Hyundai also reported a decline in quarterly revenue for the first time in over six years compared to the previous year. Revenue for the third quarter was 45.11 trillion won, reflecting a 3.4% decrease. This downturn is largely attributed to production disruptions caused by strikes at domestic factories, which led to reduced sales volumes.
As a result, Hyundai has revised most of its planned targets downward. The annual wholesale sales target has been adjusted from 4,158,300 units to 4 million units, and the operating profit margin for the consolidated sector has been lowered from 6.3-7.3% to 5.5-6.5%. The investment plan for the automotive sector has also been reassessed, reducing the budget from 17.8 trillion won to 16 trillion won.
In contrast, Kia continues to show strong performance both domestically and internationally. From January to September this year, total sales reached 2,478,144 units, a 4.4% increase compared to the same period last year, with domestic sales up by 5.4% and overseas sales by 4.2%. The sales volume from July to September was 846,764 units, marking the highest third-quarter global sales since Kia began selling cars in 1962.
Notably, the surge in eco-friendly vehicle sales is supporting Kia's growth. In the U.S., hybrid vehicles (HEVs) and in Korea and Europe, electric vehicles (EVs) are driving regional sales strategies. From January to September this year, Kia's retail sales of electrified vehicles (xEVs) reached 300,000 units, a 47% increase compared to the same period last year. The share of xEV sales during this time rose to 36.2%, an increase of 9.8 percentage points.
Market analysts suggest that the annual performance dominance between the two companies could flip. The fourth quarter will be crucial, as Hyundai aims to quickly normalize production after disruptions caused by strikes and to see how effectively new models will perform. Hyundai has begun to ramp up sales of new models such as the Grandeur, Avante, and Tucson in the second half of the year.
* This article has been translated by AI.
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