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• The companies said the target for this year is 7.47 million vehicles globally
• The companies sold 6.67 million vehicles in 2021, which was 3.7% less than the combined target of 6.92 million vehicles
Hyundai Motor Co and affiliate Kia Corp on Monday forecast their combined global sales to jump 12.1% in 2022, after missing target last year due to chip shortage.
The South Korean companies sold 6.67 million vehicles in 2021 which was 3.7% less than the combined target of 6.92 million vehicles. Chip shortage across the globe was largely responsible for missing the target.
The companies said the target for this year is 7.47 million vehicles globally.
"In 2022, Hyundai Motor plans to expand its market share and strengthen profitability through efforts to stabilise chip supply and demand, adjust vehicle production schedules, strengthen electric vehicle lineups as well as optimising sales profit and loss by region," Hyundai Motor said in a statement.
Shares of Hyundai closed 0.7% higher, versus a 0.4% rise in the benchmark market KOSPI.
Chip shortage
Automakers have struggled due to chip shortage as the demand of consumer electric gadgets soared in the pandemic. Production had to be halted by several automakers as important parts were missing.
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Demand for vehicles is expected to stay strong in 2022 as many buyers were unable to buy vehicles last year due to supply shortages.
Hyundai Motor cut its 2021 global sales target by about 4% to 4 million vehicles from 4.16 million vehicles in October.
Picture Credits: Reuters