Hyundai expands hybrid lineup, bracing for US EV policy changes
07/25/2024 09:12 AM
Hyundai Motor plans to expand its hybrid lineup after reporting positive Q2 2024 results. The South Korean automaker's hybrid lineup expansion is reportedly Hyundai's way to prepare for potential electric vehicle (EV) policy changes in the United States.
Hyundai vehicle sales increased in the United States by 2.2% in the second quarter. The company shared that high-margin SUV sales and hybrid vehicles accounted for its sales increase in the United States. Hyundai's hybrid vehicle sales jumped by 42% in Q2 2024.
Hyundai plans to expand its hybrid vehicle lineup to offset the declining demand for electric vehicles (EVs) in the short term.
“Hyundai Motor expects hybrid demand to remain strong in the short term as the growth of the EV market slows down. In the long term, the company expects EV demand to lead the market for environmentally friendly vehicles.
“In preparation for the reduction in IRA support, we are considering plans to significantly increase hybrid sales volumes based on Hyundai’s strength of flexible production," said Hyundai.
Hyundai Motor and Kia stocks in South Korea declined in July. Local analysts believe the decline is related to former President Trump's reelection chances. Trump recently announced that he would end President Biden's EV mandate, setting the tone for electric vehicles under a Trump administration.
Hyundai Q2 2024 Results
On Thursday, July 25, 2024, Hyundai Motor reported a net profit of $2.9 billion between April and June, up 23% year-over-year. The legacy automaker beat analyst estimates which predicted a net profit of $2.4 billion. Hyundai Motor's Q2 2024 net profit beat the company's recent record high set on Q2 2022.
Hyundai Motor also reported that its operating profit increased in the second quarter by $3.1 billion or 0.7% compared to the same period in 2023. The company's revenue rose 6.6% to $32 billion between April and June.
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