Hyundai stands by EV plans despite delays from Ford and GM

After achieving a record Q3 profit, Hyundai says it’s standing by its upcoming EV plans. The move comes despite several prominent automakers, including Ford and GM, recently delaying electric vehicle goals.

Hyundai Motor, including Kia and Genesis brands, announced Q3 earnings results Thursday, showing strong profit growth.

The South Korean automaker posted a record Q3 operating profit of $2.8 billion (KRW 3.82 trillion), up 146% from last year. Hyundai’s operating profit margin reached 9.3% compared to 4.1% last year. Meanwhile, net profits more than doubled to $2.4 billion (KRW 3.3 trillion).

Revenue for the quarter was up 8.7% to around $30 billion (KRW 41 trillion). The growth was enough to push Hyundai past Samsung Electronics as Korea’s top earner, according to The Korean Economic Daily.

Hyundai credited the expansion to higher SUV, electric vehicle, and Genesis brand sales. The company sold nearly 169,000 electrified (including hybrid) vehicles, an increase of 33% from last year.

2023 Hyundai IONIQ 5 (Source: Hyundai)

Hyundai maintains EV plans despite Ford, GM delays

Hyundai expects the sales momentum, including with EVs, to continue due to stronger demand for the brand and improved production.

“We do not plan to dramatically reduce EV production or our line-up due to likely near-term hurdles as we believe EV sales will grow longer term.” Seo Gang Hyun, Hyundai’s EVP, told analysts on the company’s earnings briefing (via Reuters).

Hyundai IONIQ 6 (Source: Hyundai)

The South Korean automaker will continue to “strengthen its global leadership” in EVs as it expects momentum to pick up with its dedicated EVs, including the IONIQ 5 and IONIQ 6.

Hyundai will also launch additional models, including the Hyundai Kona EV, Genesis GV60, Electrified G80, and Electrified GV70, in new global markets.

The company plans to launch 31 EVs under the Hyundai, Kia, and Genesis brands by 2030, including the upcoming three-row IONIQ 7.

Left to right: Genesis GV60, Electrified GV70, and Electrified G80 (source: Genesis)

Company executives said Hyundai has no plans to cut EV output despite several automakers doing so.

GM announced earlier this week it’s pushing back production of its Equinox, Silverado RST, and GMC Sierra EVs. The company says the move will protect pricing while boosting future profitability.

Ford revealed over the summer it will delay its 600,000 electric vehicle run rate goal until next year, citing that “EV adoption will be a little slower than expected.” The American automaker also revealed it would cut one of three shifts at its Rouge EV plant in Michigan, where the F-150 Lightning is built.

Electrek’s Take

Hyundai and Ford recently slashed prices in the US to keep pace with Tesla, who has been cutting prices all year.

Ford recently introduced new incentives on the Mustang Mach-E and F-150 Lightning as it looks to drive up sales into the end of the year.

Hyundai cut lease prices on the IONIQ 5 and IONIQ 6 in the US earlier this month, offering some of the cheapest rates since launching. The company also revealed Wednesday that 99.9% of the foundation work is complete at its EV and battery plant in Georgia.

Production is expected to begin in 2025, but Hyundai is pushing the project forward as much as possible to gain access to the IRA EV tax credit sooner.

The US is Hyundai’s largest market. Despite Ford and GM delaying EV plans, Hyundai plans to charge full steam ahead as it looks to take advantage.

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