Hyundai Motor achieves record sales in Q1… Surge in eco-friendly vehicle sales

Hyundai Motor continued its upward trend by recording its highest ever sales in the first quarter of 2024. A combination of strong sales in the North American market, increasing demand for eco-friendly vehicles, and favorable exchange rate conditions contributed to solid growth.

On the 24th, Hyundai announced through a disclosure that its consolidated sales for the first quarter of this year (January to March) reached 44.4078 trillion won, a 9.2% increase compared to the same period last year. This is the highest sales figure for the first quarter on record.

During the same period, operating profit showed a 2.1% increase, amounting to 3.6336 trillion won.

The notable driver of performance growth was increased sales in the U.S. market. Hyundai's sales in the U.S. during Q1 of this year totaled 242,729 units, marking a 1.1% increase compared to the same period last year.

Despite declines in sales from most overseas regions, including Europe (-3.8%), India (-4.2%), and China (-38.1%), global sales only decreased by 0.6% year-on-year, thanks to strong U.S. performance.

Hyundai sold a total of 1,001,120 vehicles in the global market during Q1.

Surge in eco-friendly vehicle sales and favorable exchange rates contribute to improved profitability

Sales of eco-friendly vehicles also saw significant increases, contributing to the Q1 performance. Thanks to the enhancement of the hybrid lineup, sales of eco-friendly vehicles rose by 38.4% compared to the same period last year, reaching 212,426 units.

Among these, hybrid vehicles accounted for 137,075 units, while electric vehicles totaled 64,091 units sold in the global market, driving the overall growth of eco-friendly vehicle sales.

The exchange rate situation also played a positive role. The average won-dollar exchange rate in Q1 of this year was 1,453 won, which increased by 9.4% compared to the same period last year, providing a favorable environment for Hyundai, which has a high export ratio.

However, Hyundai is cautious about the potential decline in profitability due to the U.S. government's tariff policies that will be implemented starting in Q2.

In response, the company plans to stimulate global demand through the launch of major new models such as 'The All-New Palisade,' 'The All-New Nexo,' and 'The New Ioniq 6,' while also enhancing localization strategies in each market to minimize risks.

A Hyundai representative stated, "While uncertainty in the macroeconomic environment has led to reduced sales in some emerging markets, we have achieved qualitative growth by increasing the proportion of high-value vehicles such as hybrids."

Additionally, they added, "We will actively respond to the changing management environment and faithfully implement our shareholder return policy to maximize shareholder value."

Image source: Hyundai Motor Company / Photo=Insight, Jose Munoz, President of Hyundai Motor Company / Hyundai Motor Company, youtube 'the white house'