Hyundai nearly triples profit in 2021 despite tough fourth quarter

Hyundai almost tripled its profit in 2021, despite a significant fall in the final quarter of the year, South Korea's leading carmaker said on Tuesday.

Net profit for the year came in at almost 5.7 trillion won (4.7 billion dollars) against 1.9 trillion won in 2020. Sales climbed 13 per cent to 117.6 trillion won.

Hyundai said it increased its worldwide sales by 3.9 per cent to about 3.9 million cars, fuelled by demand for its sport utility vehicles and its luxury brand, Genesis.

To meet its sales targets this year, Hyundai plans to further expand its luxury model offerings.

In contrast, global sales in the October-to-December period fell 15.7 per cent to 960,639 units. In markets outside of South Korea, supply shortages of key components such as semiconductors had a particular impact.

Net profit in the fourth quarter fell 41 per cent year-on-year to 701.4 billion won (585 million dollars). Hyundai attributed this in part to corporate tax payments.

Hyundai said it expects its supply chain issues to ease in the first half of the year.

Subsidiary Kia

Together with its subsidiary Kia, Hyundai Motor is one of the 10 largest carmakers in the world.

Hyundai and Kia aim to sell more than 7 million vehicles once again in 2022 after missing the target last year.

Hyundai also wants to introduce new electric models and is looking to achieve a 10-per-cent share of the global market for battery-powered electric vehicles by 2025.