Hyundai Motor's Fourth-Quarter Earnings Likely Rose on Year but Fell Sequentially -- Earnings Preview

Hyundai Motor Company, the South Korean automaker, is expected to report its fourth-quarter earnings in the coming days, with analysts anticipating a year-over-year increase despite a potential sequential decline. The company's performance in the quarter is likely to be driven by several factors, including the impact of the component shortage issue, sales in Korea and overseas markets, and the company's strategic moves to mitigate market uncertainties.

In the fourth quarter of 2022, Hyundai Motor's sales in Korea and overseas markets performed as follows:

1. Sales in Korea:
- Total units sold: 192,049
- Year-over-year change: +3.3%
- Key drivers:
- Strong demand for the seventh-generation Grandeur sedan
- Robust sales of Genesis luxury brand models

2. Sales outside of Korea (overseas markets):
- Total units sold: 846,825
- Year-over-year change: +9.3%
- Key drivers:
- Gradual recovery from the global component shortage
- Increased sales of SUVs and Genesis luxury brand models

These results were driven by the company's ability to optimize production at global plants, as the component shortage issue gradually improved. Additionally, the strong demand for SUVs and luxury models, as well as a favorable exchange environment, contributed to the positive sales performance in both Korea and overseas markets.

Despite the positive sales performance, Hyundai Motor is likely to report a sequential decline in earnings due to the ongoing component shortage issue and increased competition in the global automotive market. However, the company's strategic moves, such as optimizing production and launching new models, are expected to mitigate the impact of these challenges and contribute to a year-over-year increase in earnings.

In conclusion, Hyundai Motor's fourth-quarter earnings are likely to show a year-over-year increase, driven by strong sales of SUVs and luxury models, as well as a favorable exchange environment. However, the company is expected to report a sequential decline in earnings due to the ongoing component shortage issue and increased competition. Hyundai Motor's strategic moves to optimize production and launch new models are likely to mitigate the impact of these challenges and contribute to the company's overall performance in the quarter.