Hyundai hit record-high earnings in the year of 2021. Photo shows Ioniq 5(left) Lobotaxi and Prophecy, the concept car of Ioniq 6 / Photo=Hyundai
■Article Order
①Hyundai Motor and Kia are doing well in the world's largest market, the US
②Hyundai Motor leaps over the Great Wall and Mount Fuji
③“Hyundai Motor and Kia achieve record-breaking performance after overcoming the COVID-19 crisis”

Last year, Hyundai Motor Group, which reorganized its new global management units in December, sailed smoothly, hitting record-high profits despite the pandemic restrictions and constraints on production due to semiconductor supply shortage. 

The Korean giant sold fewer volume than 2020, but succeeded in gaining more income. which heralds that Hyundai managed to cure the chronic disease afflicting the manufacturing industry, in Korea. This also signifies in that the strategy of Chairman Chung Eui-sun, which is 'to make every mobility to be fully electric', will be accelerated.
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The elder sibling, Hyundai, achieves record-high revenue

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In 2021, Hyundai Motor achieved record-high in sales, thanks to the better-than -expected sales in the US. According to Hyundai's consolidated financial statements, its revenue topped 11.7 trillion KRW, up 13.1% compared to the same period of 2020.

Operating profit soared 178.9% from the previous year, from 2.3947 trillion KRW to 6.678.9 trillion KRW, the highest earnings in seven years since 2014 (7.55 trillion KRW). Net profit skyrocketed 195.8% to 5,693.1 billion KRW. The operating profit margin also increased to 5.7%, up 3.4% points from 2.3% in 2020.

Such outstanding performance was attributed to the increase in sales of eco-friendly cars and the the premium brand, Genesis. Last year, Hyundai delivered 422,000 units in the eco-friendly vehicle, which consists of electric vehicles (EVs), hybrid vehicles (HEVs), plug-in hybrid vehicles (PHEVs), and FCEVs. 

Such figures represent the growth of 64% from a year earlier. It also accounted for 10.8% of the total sales (389 million units), which grew 3.9% compared to 2020.

The sales of premium lineups drove the company to post record-high profit. Genesis, which was showered with the so-called ‘Tiger Woods effect’, topped 200,000 units last year in global sales for the first time since its launch in 2015. Genesis accounted for 5.1% of global sales, up 1.7 % from the previous year (being 3.4%). It is eye-catching change that SUV sales jumped 6.6% to represent 49.6% from 43.0%, on a year-on-year basis.

Hyundai Motor has announced its global auto sales goal at 4,323,000 units this year, which includes 732,000 units in Korea and 3,591,000 units overseas. An official from Hyundai said, “This year, the global eco-friendly car market, especially EVs are expected to see high growth, as, in major countries, stricter regulation towards greener environment will be in place, and investment in eco-friendly infrastructures will be seen, besides wave of popularity for eco-friendly cars.”
Hyundai achieved record-high profits even during the supply shortage of chips. Photo shows Genesis GV80 /Photo=Hyundai
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Kia, the younger sibling’s earnings shows off an all-time high

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In 2021, Kia posted 69.86 trillion KRW in revenue and 5.6 trillion KRW in operating profit, up 18.1% and 145.1% from the previous year, respectively. Net profit jumped 220.0% to 4.76 trillion won. Kia also recorded record-high in revenue, operating profit, and net profit last year. Kia's sales growth was possible thanks to the increase in sales of high-profitable RVs, new models, improved product mix, and eco-friendly vehicles.

Last year's operating profit rose due to the base effect from 2020, sales volume expansion, mix improvement, and overall profitability improvement, such as unit price hike, and reduction of incentives.

Back in 2021, Kia's total global sales volume was 2,776,359 units, up 6.5% from the previous year. Domestic sales saw a decrease of 3.1% to 535,016 units, but overseas sales rose 9.1% to 2,241,433 units, which led to an operating profit margin of 7.3%.

Kia's sales target for this year is 3.15 million units, an increase of 13.5% from a year earlier. Domestic sales will go up by 5.0% to 562,000 units, while overseas sales will grow 15.5% to 2,588,000 units.

An official from Kia said "We will quickly address the backlog issues over the number of cars that are yet to be delivered by expanding the production capacity, as the current automotive semiconductor crisis is likely to be eased, to some extent. We will also spare no time in improving our brand and quality , which will help to see the sales grow considerably"

In addition, Kia plans to shift the transition to EVs by further moving ahead with sales of eco-friendly vehicles such as EV6 and the new Niro.
Even chip supply shortage couldn’t stop Hyundai Motors from achieving record-high profits in the year of 2021. Photo shows new Sportage /Photo=Kia
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Future mobility strategy becomes full-fledging

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It is highly likely that the Korean giant will be focused on implementing Chung’s future mobility strategy , boosted by its record-high performance accomplished, despite all the woes that dampen the global auto market last year.

Chairman Chung remarked, in his new year’s address in 2021, “Only half of our future business will be automobiles. Another half will be UAM and robotics , 30% and 20% each” and repeatedly stressed the importance of his future mobility-driven business portfolio.

If Hyundai knelt down to the pandemic restrictions and semiconductor shortages, it would have dragged his ambitious future strategy. But the Korean giant posted record-high performance, tiding over all recurring difficulties. That’s why analysts say his future mobility will gain more impetus this year.

At the onset of this year, through the self-built metaverse 'Live Station' stage video, Chairman Jung said "We want to make 2022 a year, where our clients can use, in daily life, what we, Hyundai, have tried to offer”.

He concluded “The success of the future cutting-edge products entirely depends on whether we can secure core software technologies, including artificial intelligence(AI).” “We plan to establish an AI research center where there are excellent talents, who will develop their fields to the world-top class, and we will let platforms open to many people in order to listen to various fresh ideas and promote exchanges” and “ Our growth engines, namely, self-driving, robotics, UAM, should necessarily go with smart solution, as well”