South Korea’s Hyundai Motor Co (005380.KS) and affiliate Kia Corp (000270.KS) forecast on Wednesday that their combined global sales will rise about 2% in 2024, even as last year’s sales fell short of target.
The duo sold 7.3 million vehicles in 2023, about 3% less than their combined target of 7.52 million, largely due to a difficult economic environment, including rising interest rates and inflation that pushed vehicles out of the reach of some buyers.
The companies said they would target global sales of 7.44 million vehicles this year.
Kia sold 3.09 million vehicles globally in 2023, posting a new annual global sales record, it said in a statement. Kia’s previous best yearly performance was in 2014, with sales of 3.04 million units.
Analysts said this year’s sales targets for the two companies appeared to be achievable, but that economic issues, including high interest rates, as well as rising incentives would have an impact on auto demand and profitability.
Hyundai is aiming for a 0.6% rise in annual global sales to 4.24 million vehicles, while Kia set its sales target at 3.2 million units, up about 4% from last year.
Shares of Hyundai Motor and Kia closed down 3.3% and 3.9% respectively.
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