이 누리집은 대한민국 공식 전자정부 누리집입니다.

한상넷

비즈니스 정보

Biz News Korea(Eng)

Hyundai Motor, Kia’s record performance benefits suppliers

Collected: 2024.02.15

Distributed: 2024.02.16

Source: Go Direct

이미지 확대

IONIQ 6 [Courtesy of Hyundai Motor]

Hyundai Motor and Kia’s robust performance in 2023 gave their key suppliers financial results a boost, with the operating profits of listed first-tier suppliers growing by over 75 percent on average. Analysts attribute the boom in the Korean automotive industry to a trickle-down effect from large automakers to their suppliers.

According to an analysis conducted by the Korea Auto Industries Corp. Association on Wednesday, focusing on the financial results of 85 out of the 91 listed first-tier suppliers associated with Hyundai Motor and Kia, their combined sales for the first three quarters of 2023 grew by 14.2 percent to 64.7 trillion won ($48.6 billion) compared to the same period a year ago. Operating profits also saw a remarkable growth of 75.4 percent to 2.87 trillion won.

These figures represent cumulative results up to the third quarter of 2023, with several companies yet to disclose their fourth-quarter results. Hyundai Mobis was excluded from the analysis due to concerns that its inclusion could distort the overall trend of parts supplier performance, with the association representing Hyundai and Kia’s auto parts manufacturing suppliers.

A noteworthy aspect of the analysis is the prominence of the increase in operating profits compared to the average growth in revenue for parts suppliers. This trend is attributed to the growing demand for high-value-added components, particularly in hybrid cars, sports utility vehicles (SUVs), and electric vehicle (EV) parts supply. Out of the 85 companies analyzed, only around 10 were found to be operating at a loss.

By Park So-ra and Minu Kim

List

Previous: Korean budget carriers introduce long-haul flights to expand share

Next: LG Uplus completes verification of API-based 5G SW platform technology