Sharply targeting Toyota and Volkswagen, South Korea’s Hyundai Motor has become the world’s third-largest automaker by volume. To reach this position, Hyundai has quietly surpassed General Motors, Nissan Motor and Stellantis NV in terms of annual sales. The automaker started its business 55 years ago as a maker of affordable vehicles for the domestic market and only began to expand internationally in the 80s.
Automakers are also tricking it out with Ford Motor takes second place in US electric vehicle sales this year, behind Tesla. “We are on the right track and this year we have been very strong,” Chairman and Co-CEO Jaehoon Chang, said in an interview from the library at Hyundai’s headquarters in Seoul last week. . “We’re trying to be flexible, while optimizing and protecting the production as much as possible despite the chip shortage.”
However, challenges are also part of this journey. The automaker is facing challenges such as the suspension of a large factory in Russia and new US laws that could affect electric vehicle subsidies. The manufacturer also faces higher raw material costs, an ongoing chip shortage and allegations that Hyundai suppliers in Alabama have hired underage workers. North America accounted for 21% of total sales last year, making it Hyundai’s largest single market, while only 17% of sales came from its home market.
The automaker’s global presence stems from its strong manufacturing base in South Korea. The automaker operates the world’s largest assembly plant in Ulsan with an annual production capacity of 1.4 million vehicles. The automaker’s other nine plants span the globe and have sold 6.6 million vehicles in 2021. This year, sales are on track to grow 21% to 141.7 trillion won ($108 billion). ).
Date of first publication: December 21, 2022, 11:26 a.m. IST