The automotive industry is undergoing a transformative shift, and one of the leading players in this arena, Hyundai Motor Company, has recently showcased its financial health amidst changing market dynamicsOn January 23, Hyundai reported its earnings for 2024, presenting an impressive sales figure of 175.23 trillion Korean won, which converts to approximately 886.66 billion Chinese yuanThis marks a 7.7% increase compared to the previous year, setting a new record in the company's historyFurthermore, the company's net profit also saw a healthy growth of 7.8%, totaling 13.23 trillion Korean won, equating to about 669.44 billion yuan.

However, while Hyundai's sales and profit figures sound rosy, the company is grappling with a notable decrease in operating profit, which has fallen by 5.9% year-on-year to reach 14.24 trillion Korean won, or around 721.3 billion yuanThis decline primarily stems from the depreciation of the Korean won against the US dollar, compounded by a significant increase in the warranty reserve on its balance sheetThese financial metrics indicate not only the challenges posed by currency fluctuations but also the operational hurdles Hyundai faces in managing costs and liabilities.

In a forward-looking approach, Hyundai also released its performance guidance for the year 2025. The company has set an ambitious sales target of 4.17 million vehicles, which reflects a modest year-on-year growth of 0.8%. In terms of revenue growth, Hyundai aims to achieve increases between 3% and 4% in 2025. According to documentation submitted by Hyundai at the beginning of January 2024, the company's total global sales volume for the year stood at 4.14 million vehicles—a slight decline of 1.8% from the previous yearOn a regional basis, sales in South Korea saw a sharper decline of 7.5%, with figures around 705,000 units, while overseas sales fell slightly by 0.5% to 3.43 million unitsMeanwhile, Kia Motors, a subsidiary of Hyundai, managed to sell 3.08 million vehicles in 2024, showing a slight increase year-on-year.

To meet these sales targets in the coming year, Hyundai is positioning itself to substantially enhance its lineup of electrified vehicles, including hybrid and fully electric models

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The company is planning to boost localized manufacturing capabilities across its global plants, thereby optimizing its product lineup and vehicle supply management tailored for each marketIn a bid to adapt to various consumer needs, Hyundai is also enhancing its proactive management capabilities to increase production flexibility across diverse models.

As the world embraces the renewable energy wave, Hyundai is placing unprecedented emphasis on the development of energy-efficient and new energy vehiclesIn 2024, the combined sales of new energy vehicles from Hyundai and Kia rose by 5.8%, reaching 423,000 units, breaking the 400,000 mark for the first timeThis achievement signals early success for Hyundai's investment and strategic efforts in the new energy vehicle sectorNevertheless, the situation is contrastingly different for Hyundai's joint ventures in the Chinese marketBeijing Hyundai reported total sales of 154,000 units in 2024, plummeting by 39% year-on-yearThis sharp decline can be attributed to factors such as diminished brand competitiveness, slow product refresh cycles, and intensified market competitionConversely, Yueda Kia, another joint venture, achieved remarkable sales growth of 49.2%, tallying 248,000 units sold—an outcome of strategic adjustments in product offerings and enhanced market promotionBeing the largest automotive market globally, China is crucial for Hyundai’s overall growthThe challenge that lies ahead for Hyundai is to synergistically develop its joint ventures in China and enhance the competitiveness of its brands.

At a previous investor day in August 2024, CEO Chang Jae-hoon unveiled a new mid to long-term strategy for the companyHe emphasized Hyundai's intent to bolster market competitiveness through the promotion of electric and extended-range electric vehicles, aiming for more ambitious sales goalsBy 2030, Hyundai plans to achieve annual sales of 2 million electric vehicles globally and intends to introduce new extended-range models specifically tailored for the North American and Chinese markets

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