As electric vehicle sales dropped by nearly a quarter in the second quarter, Hyundai plans to rely on hybrid vehicles to boost momentum. Despite a near-term “Chasm,” Hyundai is betting on electric vehicles (EVs) to drive long-term growth and momentum. The company is intensifying its efforts on the IONIQ brand and launching a range of affordable electric vehicles, mirroring the success of the Cassiopeia Electric model, also known as the Innser EV in international markets.
Uncertainty brewing
Despite uncertainty surrounding the business environment and concerns over sluggish demand due to persistently high interest rates, Hyundai reported a record-breaking second quarter.
Despite the intensification of competition in key markets, Hyundai has managed to post impressive quarterly results, including robust gross sales and working revenue margins in its Q2 financials.
Hyundai’s gross sales surged 6.6% in the second quarter of 2024, reaching a record-breaking $32.7 billion (approximately KRW 45.206 trillion), eclipsing previous quarterly highs.
Hyundai’s operating profits soared to a record $3.1 billion (KRW 4.2791 trillion), driven by a positive alternate fee, enhanced marketing expenses, and robust automobile sales. South Korean automobile manufacturers consistently demonstrated a healthy revenue margin of more than 9 percent.
Hyundai reported a global auto sales total of 1,057,168 units for the second quarter, marking a slight decline of 0.2 percent compared to the same period last year. Outside of China, Hyundai’s gross sales have risen by 2.2% compared to the same period last year. Hyundai attributed its growth to robust North American sales performance.
Hyundai plans to significantly boost its hybrid offerings while also grappling with the long-term implications of electrification vehicles.
Hyundai’s domestic sales reached 185,737 units, a 9.6% decline from the same period last year. Hyundai attributed the decline to a slowdown in demand for electric vehicles (EVs) and eroding customer confidence. In 2022, Hyundai’s global sales surged by 2% to reach 871,431 units, primarily driven by strong demand for its newly launched Santa Fe and Genesis GV80 models.
Although hybrid sales skyrocketed by 26.4% to 122,421 units, Hyundai’s electric vehicle sales took a hit, declining 24.7% to 58,950 units in the second quarter. Hyundai notes that the global electric vehicle market has reached a plateau, with demand temporarily stalling.
To meet growing demand, Hyundai intends to significantly boost its hybrid offerings. Despite a temporary dip in demand, Hyundai anticipates its electric vehicles (EVs) will propel growth over the medium- to long-term as investments and regulations escalate.
Hyundai is poised to expand its IONIQ Electric Vehicle (EV) lineup by introducing additional hybrid models while simultaneously unveiling a new range of electric vehicles, featuring the recently announced Casper Electric.
In December, Hyundai initiated pre-orders for its Casper Electric vehicle, also referred to as the Ioniq 5 overseas, in South Korea, with a starting price of approximately $22,800 (31.5 million Korean won). For just $14,500 – a price that’s hard to resist with incentives in play, like 20 million dollars gained – you could drive away in a Casper EV. In Europe, prices are expected to start at around $27,000 (approximately 25,000 euros).
A first look at Hyundai’s latest electric vehicle emerged recently, captured on camera for all to see. By the end of this year, Hyundai is poised to unveil its inaugural three-row electric SUV, the IONIQ 9.
As Hyundai prepares for an impending shift in US electric vehicle (EV) insurance policies following the November elections, Trump has vowed to scrap the non-existent EV mandate if he emerges victorious. Hyundai may expand the lineup at its upcoming electric vehicle (EV) plant in Georgia, potentially introducing additional hybrid models when it opens later this year for greater flexibility.
Following Ford’s significant miss of earnings expectations, Ford’s electric vehicle (EV) segment incurred significant losses, amounting to $2.5 billion in the first half of 2024, according to its Q2 2024 earnings report.
