On October 26, Hyundai Motor Company announced its third quarter performance report. The company's third-quarter revenue was 28.87 trillion won (approximately US$2.475 billion), an increase of 4.7% year-on-year.

　　 From July to September this year, Hyundai sold 898,906 vehicles globally due to the global chip supply interruption, a decrease of 9.9% from the same period last year. Among them, sales in overseas markets were 744,159 vehicles, a year-on-year decrease of 6.8%; domestic sales were 154,747 vehicles, a year-on-year decrease of 22.3%.

　　 Hyundai Motor’s operating profit in the third quarter was 1.61 trillion won, and its operating profit margin was 5.6%. Net profit was 1.49 trillion won (including non-disposable interest), which was an improvement over the same period last year.

　　On the one hand, the sales of electric vehicles and luxury brand Genises models have driven Hyundai’s revenue growth. On the other hand, last year, Hyundai Motor Group (including Kia Motors) recalled a batch of cars due to engine quality problems. Hyundai included this one-time recall fee in its performance report for the third quarter of last year. It lost 336 billion won.

　　 (Image source: Hyundai Motor)

　　 Hyundai Motor believes that the global shortage of semiconductor supplies will continue into the fourth quarter, and the company expects that sales growth in the fourth quarter of 2021 will decline. However, Hyundai Motor is taking all necessary measures to minimize the impact of chip shortages. Hyundai hopes to develop its own chips and reduce its dependence on chip manufacturers. Hyundai Mobis will play a central role in Hyundai's internal chip development plan.

　　 Hyundai Motor also plans to continue to expand the product portfolio of SUVs and luxury cars, optimizing production plans and sales strategies, and increasing revenue despite the difficult operating environment.

　　 By launching the first all-electric model IONIQ 5, and the first all-electric GV60 and other new models under the Genesis brand, Hyundai Motor is committed to becoming a leader in the electrification era while responding to the global carbon neutral goal.

　　 Hyundai Motor revised its performance target for this year. The company's sales target for this year has been reduced from 4.16 million to 4 million due to a shortage of chips. The revenue growth rate of the automotive business increased from 14% to 15% to 17% to 18%, and the operating profit margin increased from 4% to 5% to 4.5% to 5.5%.

Eugene Investment & Securities analyst Lee Jae-il said, “According to Hyundai’s latest forecast for its operating profit margin target, the fourth quarter may be Hyundai’s most profitable quarter this year, because Hyundai seems to believe that the chip supply problem will be Improved in the fourth quarter."

　　 This article is reproduced from Gasgoo.com