Hyundai, Kia expect auto sales jump in 2022 amid chip shortage

South Korea\’s Hyundai Motor Co
(005380.KS) and affiliate Kia Corp (000270.KS) on Monday forecast that their
combined global sales will jump 12.1% in 2022, even as last year\’s sales fell
short of target due to a global chip shortage.

The companies sold 6.67 million
vehicles in 2021, about 3.7% less than their combined target of 6.92 million
vehicles, largely due to supply problems including the chip shortage, which
drove down vehicle shipment.

They said they would target
global sales of 7.47 million vehicles this year.

\”In 2022, Hyundai Motor
plans to expand its market share and strengthen profitability through efforts
to stabilise chip supply and demand, adjust vehicle production schedules,
strengthen electric vehicle lineups as well as optimising sales profit and loss
by region,\” Hyundai Motor said in a statement.

The shortage, due to supply
problems and a surge in demand for consumer electric gadgets during the
pandemic, has hit the auto industry hard, with millions of vehicles worldwide
not being produced because important parts are missing.

Analysts said this year\’s target
seemed reasonable.

Lee Jae-il, an analyst at Eugene
Investment & Securities, expected demand for vehicles to stay strong in
2022, underpinned by pent-up demand from consumers unable to buy 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 (.KS11).

In October, Hyundai Motor cut its
2021 global sales target by about 4% to 4 million vehicles from 4.16 million
vehicles.