Hyundai Motor Group rises to world’s third-largest automaker

South Korea’s largest automaker Hyundai Motor Group ranked third in global car sales in the first half, its highest-ever ranking in terms of volume, amid an automotive chip shortage.

The group, including Hyundai Motor Co., premium brand Genesis and affiliate Kia Corp., sold a combined 3.3 million cars globally, following Toyota Motor Corp.’s 5.14 million units and Volkswagen’s 4.01 million units, industry data showed on Monday.

The Renault-Nissan-Mitsubishi Alliance came in fourth with 3.14 million cars, followed by the Stellantis Group at 3.02 million units.

The Korean automotive group previously ranked fifth in terms of sales volume for years.

Hyundai attributed its strong sales to its proper management of auto parts and chips, which were in short supply globally, as well as increased sales of luxury Genesis models, sport utility vehicles and electric cars such as the Hyundai IONIQ 5 and the Kia EV6, particularly in the US market.

Hyundai sold a record 25,668 Genesis cars in the US in the first six months of the year. The Korean automotive group ranked second in the US electric vehicle market, following global leader Tesla Inc.

The top five automakers all posted sales declines on a year-on-year basis, with Hyundai Motor Group posting the least percentage fall.

The Renault-Nissan-Mitsubishi Alliance reported a 17.3% sales decline in the January-June period, followed by the Stellantis Group’s 16%, Volkswagen’s 14%, Toyota’s 6% and Hyundai’s 5.1%.

Stellantis is a 50-50 joint venture formed by the merger of US carmaker Fiat Chrysler Automobiles N.V. and French automaker PSA Groupe.

EASING CHIP SHORTAGE TO BOOST PRODUCTION

Hyundai Motor Co., which posted its highest-ever quarterly sales and operating profit in the second quarter, expects the easing automotive chip shortage to increase its car production in the second half.

However, it warned of tough business conditions, likely boosting its marketing costs for the rest of the year.

The company said it would strengthen its EV lineup, including the recently launched IONIQ 6, which it hopes will continue to drive its earnings higher in the third quarter.

During a third-quarter earnings call in July, Hyundai Motor said it maintains its annual sales target of 4.3 million cars, up 10.5% from last year. The figure excludes sales by its sister firm Kia.

It projects a revenue increase of 13-14% and an operating profit margin of 5.5-6.5% for 2022.

The automaker plans to double its EV lineup to 13 by 2030 from the current six models – three from Hyundai and three from the luxury Genesis brand.

Write to Han-Shin Park at phs@hankyung.com
In-Soo Nam edited this article.