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Hyundai Motor Company is planning to mass-produce Electric Vehicles (EV) by developing solid-state batteries to implement this plan.
Hyundai Motor Company (KRX: 005380) is enjoying a form of its life after recording a Q1 profit that is close to its all-time high in four years. Their net profit surged from 463 billion last year to 1.5 billion won in the first quarter of this year after surging by 175.4%. After releasing their quarterly report, their shares recorded a 2% surge in the stock market.
The sales also rose by 8.2% to record 27.4 billion won in the year under review. The Q1 operating profit of Hyundai rose by 91.8% from January to March to hit 1.7 billion won.
Seo Gang-Hyun, the Executive Vice President at Hyundai in an interview said that the company is in line to adjust production which may be similar or more than the measures implemented in April. Recently, lack of chips forced the company to halt operations of Its Sonata and Grandeur Sedans in one of its local factories.
According to reports, the temporary halt will lead to the loss of production of 2050 vehicles. The shortage has hit most car manufacturing companies like Ford Motor Company (NYSE: F) and Toyota Motor Corp. (TYO: 7203) who have put the production of some models on hold to ensure that some factories can keep running.
Despite the predicted halt of production in May due to shortages, some analysts believe that the company will continue to do well as it did in the first quarter of 2021 in the US market. It is said that their positive performance was due to their car sales and vehicle mix improvement. Its operating profit margin which was 3.4% in the first quarter of 2020 rose to 6% in the same period this year.
“We forecast [Hyundai’s] US margin to improve further in 2021 with record-high net profit, led by Genesis brand sales nearly tripling and localized production of [the] Tucson SUV,” said Angela Hong, an analyst at Nomura.
It is important to note that Hyundai has a lot of longtime plans which have been well accepted by investors to cause a surge of its stocks by 18% to become the third-best performer among the automakers in Asia.
The company is planning to mass-produce Electric Vehicles (EV) by developing solid-state batteries to implement this plan. They also plan on increasing its electric cars in eight models to 160,000 this year.
Last year, the company produced 100,000 vehicles In four models. The plan is to improve on that. Hyundai plans on raising its electric vehicle production to 560,000 in twelve models by 2025. The company has promised to announce any change in plans concerning the halting of their production in April.