Hyundai Motor’s operating profit more than doubled in the fourth quarter from the same period the year before, the company said Thursday, as the South Korean automaker strengthens its lineup of electric vehicles in the global market.
Hyundai’s operating profit jumped 119.6% to 3.4 trillion won (USD 2.8 billion) in the October-to-December period, year on year, with revenue jumping 24.2% to 38.5 trillion won.
The company’s net profit, meanwhile, surged 143.8% to 1.7 trillion won for the three months, year on year.
Quarter on quarter, operating profit rose 116.5%, while revenue increased 2.2%.
The result beat a market consensus that forecast the company’s operating profit to reach 3 trillion won and revenue at 38.1 trillion won. FnGuide, a research firm, collected data from 17 brokerage houses.
“We think Korean automakers could emerge from a downturn to a stronger position relative to their competitors, given their strong model lineup and pent-up demand waiting to be delivered,” Angela Hong, a Nomura analyst, said in a note earlier this month.
The latest results come as Hyundai enjoys rising sales of electric vehicles and the launch new models in key markets, including the US and Europe. The company aims to lift its global EV sales including domestic market sixfold to 840,000 vehicles in 2026 from the 140,000 sold in 2021.
Hyundai, which in tandem with affiliate Kia forms the world’s fifth-largest automaker, is also securing its supply chains for EV production by cooperating with battery makers. Hyundai and South Korea’s LG Energy Solution launched a joint venture in Indonesia in 2021 and plan to produce EV batteries starting next year.
But Hyundai faces challenges in the US, its key market, as President Joe Biden’s administration offers tax credits for EVs, but only for vehicles made domestically.
To comply with Washington’s policy, Hyundai began construction on its first EV plant in the US last year, with plans to manufacture vehicles in the state of Georgia from 2025.
This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.