HYUNDAI MOTOR COMPANY (HMC)
Corporate Disclosure to Korea Exchange
Disclosure Title : February 2020 Sales Results
1. Sales Results:
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|YoY % Change|
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- The above sales units include CKD exports.
- The above sales units are wholesales.
- For further information, please refer to the company website (http://worldwide.hyundai.com)
3. Impact from COVID-19 and Forecast
- Due to extension of Chinese New Year holiday by Chinese government and delayed normalization of production caused by the nationwide proliferation of COVID-19, production disruption occurred in certain supplier located in China, which led to temporary stoppage of production in HMC's Ulsan, Asan and Jeonju plants in February. Also, additional production stoppage has been occurred due to temporary shutdown of certain domestic supplier and HMC's Ulsan No. 2 plant due to confirmed cases of COVID-19, resulting in decrease of February domestic sales.
- HMC is estimating production losses until February to be approximately 80,000 units. HMC will try to recover most of these production losses in the future.
- Notably, sales of Beijing Hyundai Motor Company, one of HMC's major affiliates, decreased drastically due to extended Chinese New Year holiday and severe year-on-year decline in market demands.
- Recent decline in industry demand and production losses caused by COVID-19 may impact negatively on sales and earnings of Q1 and H1. Also, additional shutdown and production losses may take place in case the COVID-19 situation prolongs and/or worsens.
- HMC will take every measure to normalize plant operation and minimize production losses, as well as continue to actively prepare for various risk factors regarding COVID-19.