Hyundai Motor and Kia see record sales in 2023

[Photo by Lee Chung-woo]

Hyundai Motor Co. and Kia Corp. posted record-breaking sales in 2023, with more than 2 trillion won in monthly profit and a 10 percent increase in annual operating margin. Their combined annual operating profit soared to 26.7 trillion won ($19.4 billion), a substantial 10 trillion won surge from their previous peak in 2022.

The remarkable growth was attributable to a surge in sales of high-end vehicles such as Genesis, recreational vehicles (RVs), and eco-friendly cars.

Hyundai Motor and Kia announced a combined annual sales of 262.4 trillion won and an operating profit of 26.7 trillion won for 2023 on Thursday. A breakdown of these figures revealed that Hyundai Motor saw sales of 162.6 trillion won and an operating profit of 15.1 trillion won, while Kia reported sales of 99.8 trillion won and an operating profit of 11.6 trillion won. The two automakers earned 15 trillion won and 10 trillion won in operating profit, the highest in the companies’ history, with a combined full-year operating margin of 10.2 percent.

This record-breaking performance was backed by robust sales growth in major international markets such as the U.S. and Europe, in addition to an expanded product portfolio focusing on high-value vehicles. Hyundai Motor and Kia sold 4.21 million and 3.08 million cars globally in 2023 for a record 7.3 million units.

The latest sales data suggested that the two automakers their position as the world’s third-largest automaker for a second year. Toyota remained the top carmaker, with sales reaching 10.7 million units last year, while Volkswagen kept its second position with 9.24 million vehicles sold.

The two automakers are expected to continue sustainable growth in 2024, especially in the eco-friendly vehicle market, to respond to the world’s shift toward environmental regulations and facility investment.

Hyundai Motor aims for a full-year sales target of 4.24 million units, a 0.6 percent increase from the previous year, with an operating margin target of 8 to 9 percent. Kia expects an annual sales volume of 3.2 million units in 2024, a 3.6 percent year-on-year increase, and an operating margin of 11.9 percent.