SEOUL, January 26, 2021 – Hyundai Motor Company today announced its business results for the fourth quarter of 2020. The fourth-quarter revenue increased 5.1 percent year-over-year to KRW 29.24 trillion.
The company sold 1,139,583 units around the globe in the October-December period, a 4.7 percent decrease from the year earlier. Sales in markets outside of Korea decreased by 6.6 percent to 935,393 units as industry demand remained weak in most of markets around the world. Sales in Korea gained 5 percent to 204,190 units, led by new models, such as all-new Tucson SUV and Elantra sedan. The G80 sedan and GV80 SUV of Genesis luxury brand also helped to boost sales momentum.
Hyundai’s operating profit in the fourth quarter climbed 40.9 percent from a year earlier to KRW 1.64 trillion, with operating profit margin reaching to 5.6 percent, the highest since the first quarter of 2017. Net profit (including non-controlling interest) increased to KRW 1.38 trillion from KRW 772.1 billion in the same period.
Robust sales of SUV models and Genesis luxury models as well as declining incentives helped lift revenue in the fourth quarter despite an adverse economic environment and an unfavorable exchange rate. Sales recovery and market share expansion in North America, India and Russia also contributed to higher revenue.
In 2020, Hyundai’s global sales totaled 3,744,737 units, down 15.4 percent from a year earlier. Revenue declined 1.65 percent from 2019 to KRW 104 trillion while operating profit dropped 22.9 percent to KRW 2.78 trillion. Net profit (including non-controlling interest) slid 33.5 percent to KRW 2.12 trillion.
Hyundai Motor today announced that it will share financial guidelines with markets to enhance transparent communication and strengthen credibility. In 2021, the company aims for 14~15 percent of revenue growth and 4~5 percent annual operating profit margin in the automotive division. The company aims for a total sales of 4.16 million vehicles this year.
The company plans to maintain its 2020 year-end dividend at KRW 3,000 per share, the same level as in 2019.
Hyundai considers 2021 will be the year of its great transformation into a Smart Mobility Solution Provider and will concentrate on its future business strategies, including electrification, UAM, robotics and fuel cell system. In particular, the company plans to cement EV market leadership with its first dedicated EV model IONIQ 5.
The company will focus on enhancing its product mix with SUV and luxury models and improving profitability based on cost innovation to become a leader in the future mobility industry despite the tough business environment.
Hyundai Motor will also improve profitability and normalize sales in markets around the globe amid prolonging COVID-19 pandemic and a potential unfavorable shift in the currency environment.
(Revenue / Operating Profit / Net Profit unit : Billion KRW)
|Vehicle Sales (Units)||1,139,583||3,744,737||1,195,859||4,425,528|
|Rest of the world||935,393||2,956,890||1,001,452||3,683,686|
* Net Profit includes non-controlling interest
* Under K-IFRS
About Hyundai Motor Company
Established in 1967, Hyundai Motor Company offers a range of world-class vehicles and mobility services in more than 200 countries. Hyundai Motor sold more than 4.4 million vehicles globally in 2019, and currently employs some 120,000 personnel worldwide. The company is enhancing its product lineup with vehicles designed to help usher in a more sustainable future, while offering innovative solutions to real-world mobility challenges. Through the process Hyundai aims to facilitate ‘Progress for Humanity’ with smart mobility solutions that vitalize connections between people and provide quality time to its customers.
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