Last year’s sales fell short of target due to supply chain disruptions South Korea’s Hyundai Motor Co and affiliate Kia Corp forecast on Tuesday that their combined global sales will jump nearly 10% in 2023.
The companies sold 6.85 million vehicles in 2022, about 4% less than their combined target of 7.16 million vehicles, largely due to problems including chip and component shortages. They said they would target global sales of 7.52 million vehicles this year.
Analysts said that the sales targets of the two companies for this year appear to be aggressive but achievable, considering pent-up demand for vehicles.
The analyst at Daishin Securitie Kim Gwi-yeon said, “Hyundai Motor and Kia are still seeing relatively higher back orders of vehicles and car buyers are still waiting in line to buy cars despite the recent economic environment with that demand in the picture, the companies appear to be confident.”
Shares of Hyundai Motor and Kia closed up 1.3% and 1.5% respectively, versus a 0.3% fall in the benchmark market KOSPI.
In October, Hyundai Motor cut its 2022 global sales target by about 7% to 4.01 million vehicles from 4.32 million vehicles.
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