Hyundai, Kia expect 2% rise in auto sales in 2024

South Korea’s Hyundai Motor Co. and its affiliate Kia Corp. said on Wednesday they expect their combined global sales to rise about two per cent in 2024, Reuters reported.

The companies have sold 7.3 million vehicles in 2023, with a drop of around three per cent than their combined target of 7.52 million.

According to Reuters, this comes mainly due to a difficult economic environment amidst rising interest rates and inflation.

Both Hyundai and Kia said they would target combined global sales of 7.44 million vehicles this year.

“Hyundai plans to take a lead in electrification and focus on optimizing profitability by strengthening its global electric vehicle (EV) production infrastructure, establishing flexible business strategies to adapt to market changes, and reinforcing preemptive risk management capabilities,” Hyundai said in a statement.

In 2023, Kia sold around 3.09 million vehicles across the globe, with a new annual global sales record.

Reuters reported that analysts said that the 2024 sales target for both companies might be achievable, however, economic issues, including high interest rates, and rising incentives would have an impact on auto demand and profitability.

Hyundai is seeking to increase its sales by 0.6 per cent to reach 4.24 million vehicles, while Kia is eyeing an increase of four per cent to 3.2 million units.