Hyundai Motor Group which runs Hyundai Motor, Kia Corp. and Genesis sold a total of 7.34 million vehicles globally in 2023, ranking third in sales, according sources in the automobile industry. This marked the second consecutive year that the group has ranked among the big three.
Toyota Group, with brands such as Toyota and Lexus, came in first, followed by Volkswagen Group in second place. Hyundai Motor Group was followed by the Renault-Nissan-Mitsubishi Alliance, a combination of France’s Renault and Japan’s Nissan and Mitsubishi.
Hyundai Motor Group widened the gap with the fourth ranker. In 2023, the difference in sales between Hyundai Motor Group and the Renault-Nissan-Mitsubishi Alliance increased from 688,000 units in the previous year. It solidified its position as one of the global big three.
Industry insiders believe that Hyundai Motor Group needs more quantitative growth to rise to one of the global top two. In 2023, the Korean automotive group’s sales growth rate was 6.7 percent. It fell short of No. 1 Toyota (7.2 percent) and No. 2 Volkswagen (11.8 percent). Its small gap with the four place holder is also seen as a reason for Hyundai to further increase its sales.
However, these industry insiders are more optimistic about Hyundai Motor Group’s future growth prospects. Hyundai Motor Group is planning to promote quantitative growth by completing its electric vehicle factory in Georgia of the United States. Hyundai Motor Group Metaplant America (HMGMA) will go live as early as October. Volume production of electric vehicles will start at Kia Autoland Gwangmyeong in Korea.
In addition, profitability will be centered on sports utility vehicles (SUVs) and hybrid vehicles. Hyundai Motor Group looks to achieve high profitability by increasing its average selling price (ASP) while expanding its global business portfolio centered on eco-friendly and high-value-added vehicles.
“Due to the cyclical nature of the automotive industry, competition will inevitably intensify as demand slows down,” said Nam Joo-shin, a researcher at Kyobo Securities. “However, we expect a better business environment for Hyundai Motor compared to its major global competitors in 2024 due to an improved price mix and exchange rates.”