Dive Brief:
- Hyundai Motor Company earned a record $13 trillion won ($9.7 billion) in profits in 2023, a 58.4% year-over-year increase, the company said when it reported earnings Thursday.
- Strong sales in the U.S., Europe, India and Brazil drove the automaker’s record-setting year. Sales of highly profitable vehicles, including SUVs and models from its luxury brand Genesis, also buoyed the company’s earnings.
- The automaker plans to sell 4.24 million vehicles in 2024, slightly more than last year, with an operating margin between 8% and 9%. Hyundai’s operating margin was 9.3% in 2023.
Dive Insight:
Despite last year’s success, Hyundai is taking a cautious approach in 2024 as high interest rates and a global economic slowdown threaten new vehicle sales. The automaker plans to focus on improving its profitability rather than growing its business, executives said during Thursday’s earnings call.
The automaker had 162.2 trillion won in revenue in 2023, a 14.4% YoY increase. But its revenue growth slowed during Q4, rising 8.3% YoY to 41.7 trillion won.
Hyundai's eco-friendly sales and revenue growth slow in Q4
Key financial metrics and year-over-year percent change comparisons
| FY 2023 | Q4 2023 | |
|---|---|---|
| Retail sales | 4.2 million (up 4.9%) | 1.1 million (up 6%) |
| Combined sales of hybrid, electric and fuel-cell vehicles | 695,000 units (up 37.1%) | 173,000 units (up 27.2%) |
| Revenue | 162.2 trillion won (up 14.4%) | 41.7 trillion won (up 8.3%) |
The automaker said it managed to increase EV sales in the U.S. last year, in the face of softening demand, by focusing on leasing and fleet sales.
Hyundai expects hybrid sales to grow about 60% YoY in 2024 as EV sales slow, with executives on the call saying they’re as profitable as internal-combustion-engine vehicles and, in some cases, more profitable.
