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Hyundai Motor Co. and its affiliate Kia Corp. of South Korea forecasted on Monday that their combined global sales will increase 12.1 percent in 2022, despite the fact that sales fell short of expectations last year due to a global chip shortage. The companies sold 6.67 million vehicles in 2021, which was about 3.7 percent less than their combined target of 6.92 million vehicles, owing to supply issues such as chip shortages, which slowed vehicle shipment. They stated that they intend to sell 7.47 million vehicles globally this year. “In 2022, Hyundai Motor plans to expand its market share and strengthen profitability through efforts to stabilize chip supply and demand, adjust vehicle production schedules, strengthen electric vehicle lineups as well as optimize sales profit and loss by region,” Hyundai Motor said in a statement.
The shortage, caused by supply issues and a surge in demand for consumer electric gadgets during the pandemic, has taken a heavy toll on the auto industry, with millions of vehicles worldwide being unable to be produced because critical parts are missing.
According to analysts, the target for this year appears reasonable. Lee Jae-il, an analyst at Eugene Investment & Securities, predicted that vehicle demand would remain strong in 2022, fueled by pent-up demand from consumers who were unable to purchase vehicles last year due to supply shortages. “It appears that the chip shortage has been showing some signs of easing … however, rising raw material prices would likely have (an) impact on their profitability,” Lee added. Shares in Hyundai Motor closed 0.7% higher, versus a 0.4% rise in the benchmark market KOSPI.
In October, Hyundai Motor cut its 2021 global sales target by about 4% to 4 million vehicles from 4.16 million vehicles.