South Korean automotive major Hyundai Motor Company sees a slower year ahead, projecting a revenue growth of 3-4% in 2025, lower than the 7.7% on year growth seen last year.
Compared to 2024, Hyundai said it sees greater 'macro uncertainties' this year, along with intensifying competition and limited demand growth. However, the volume growth in 2024 has been encouraging, said the global automotive giant.
The car company reported an operating profit of 2.8 trillion won ($1.95 billion) for the December quarter, 17% lower on year, weighed down by expenditure on car promotions. The December quarter sales growth came in at 12% on year, taking the annual revenue to a record. For the quarter, Hyundai's global sales fell despite strong demand from US and Indian markets, as South Korean, European and Chinese growth remained sluggish.
On the wholesale basis, Hyundai has projected a muted one percent growth in car sales from India in 2025, at 6,14,000 units.
The Trump administration's plans to revoke subsidies for electric vehicles is being seen as a headwind for the company's US plans. Hyundai, along with Kia Motors, where it owns a stake, have been highly popular EV options, second only to Tesla Inc, though by a wide margin.
Kia also has a factory in Mexico that makes own vehicles and SUVs for Hyundai Motor, meant for US exports. Any possible trade measure that could impact the North American car supply chain will be a key overhang for both the players.
The car company will spend 16.9 trillion Korean won in 2025 as investment into the business, with increased component of R&D and capex spend. The management has also reaffirmed its plans to buyback up to 4 trillion won worth of shares over the next three years.
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