Dive Brief:
- Hyundai Motor Co. reported third quarter revenue of 42.93 trillion won ($31 billion), an increase of 4.7% year-over-year, the automaker announced in its Q3 earning report on Thursday.
- Hyundai’s quarter-over-quarter revenue declined by 4.6% in Q3, with vehicle sales down slightly in its key markets, including Europe, which reduced its profits.
- Sales of pure electric vehicles declined slightly from last year, accounting for 6.8% of automaker’s U.S. sales in Q3. Hybrid vehicle sales continue to grow, however, accounting for 16.8% of Hyundai’s total U.S. sales volume in Q3, a nearly 30% increase from last quarter and up from 10.9% in Q3 of last year.
Dive Insight:
Globally, Hyundai’s Q3 vehicle sales reached 1,011,808 units, a 3.2% decline. However, the automaker’s sales in North America were up 9.3% to 300,319 units.
Sales of SUVs and crossovers were also strong in the U.S. market. The SUVs and crossover segment, which includes electrified models, accounted for 72.7% of the 251,000 vehicles Hyundai sold in the U.S. in Q3. A growing number of these SUVs sales were more eco-friendly models. Hyundai cited its expanded hybrid lineup and the popularity of the Santa Fe and Tucson SUVs for the sales gains.
In total, eco-friendly models, including pure EVs, plug-in hybrids and fuel cell EVs, accounted for 24.3% of Hyundai total U.S. sales in the quarter, reaching 61,000 units.
However, the automaker’s sales of pure electric models in the U.S. have dropped 19% from the same period last year, accounting for 6.8% of Hyundai's quarterly sales volume. This is partially due to EV demand waning across the industry and consumers flocking to more affordable hybrid vehicles.
Globally, Hyundai’s eco-friendly vehicle sales have increased nearly 20%, with sales of hybrid models increasing by 44% to 131,000 vehicles in the quarter compared to Q3 2023.
Although Hyundai’s vehicle sales declined slightly in Q3, the automaker’s margins have remained relatively stable. The company reported a profit margin of 7.5% in Q3 on net income of $2.3 billion, down slightly from 8.1% margin in the same period last year. The automaker cited uncertainties due to global economic conditions and increased global competition.
Hyundai expects to achieve its 2024 annual guidance of 4% to 5% YoY sales growth and an operating margin of 8% to 9%, according to KED Global.
