Delhi Delhi: Hyundai Motor on Thursday said it is in talks with General Motors to supply commercial electric vehicles to its US rival, as it expects sales growth to halve this year due to softening demand.South The Korean automaker said discussions with GM cover various areas of cooperation including joint parts procurement and tie-ups in passenger vehicles. Hyundai said it aims to sign binding deals on commercial EV supply and auto part purchases this year.
The talks come as global automakers brace for policy uncertainty in the US, the world's second-largest auto market, that threatens to dampen demand, as US President Donald Trump said this week. He may impose 25 percent import tariffs on Canada and Mexico from February 1. Hyundai Chief Financial Officer Lee Seung Jo told analysts, “We expect more business uncertainties than ever this year, as not only in the domestic market but even in America “There will be potential policy changes, with Europe having tighter emissions regulations.”
Hyundai, which along with its sister company Kia is the world's third-largest automaker by sales, on Thursday forecast its revenue will grow 3.0 percent to 4.0 percent in 2025, compared with 7.7 percent a year earlier. Was. It expects its operating margin to expand from 8.1 percent to 7.0 percent to 8.0 percent in 2024.
North America and South Korea are Hyundai and Kia's two biggest markets. Hyundai also warned of uncertainties, citing slowdown in key markets, lack of demand for electric vehicles and macroeconomic instability. Hyundai forecast 2.8% for October-December recorded an operating profit of 1 trillion won ($1.95 billion) as it spent more on promotions in a slowing car market.This was based on 24 analyst estimates compiled by LSEG SmartEstimate. The 3.2 trillion won was below the average, which is weighted toward more consistently accurate analysts' estimates.
Hyundai shares remained flat after the earnings announcement. During the quarter, Hyundai's global retail sales declined as good sales in the United States and India were offset by sluggish demand in South Korea, Europe and China. Analysts said the weak local currency against the U.S. dollar helped boost Hyundai's repatriation income, but foreign debt and related financing costs also increased, hurting profits.
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