Volatility in raw material prices, the ongoing semiconductor chips shortage, and persisting effects of the COVID-19 pandemic are expected to drive down Hyundai Motors’ sales in H2 2021.
However, the firm expects the global chip supply to improve in the second half and plans to look for alternative chip parts to increase its inventory levels and improve its supply chain to fulfill orders, it indicated in a statement on Thursday.
Hyundai’s total sales in Q2 2021 rose by 46.5pc to one million vehicles from 703,976 units in Q2 2020. In Korea, the carmaker’s sales dropped by 11pc to 200,682 vehicles from 225,552 units during the same period. Global sales, however, increased by 73.6pc in the second quarter to 830,667 units from 478,424 units annually.
The firm’s revenue in Q2 2021 grew by 38.7pc to KRW 30.3tn ($26.3bn) in Q2 2021 compared to KRW21.8tn in the same quarter last year. Its net profit surged four-fold to KRW1.9tn in Q2 2021 compared to KRW 377.3bn in Q2 2020.