Hyundai Motor's global sales fall short due to semiconductor shortage

Hyundai Motor Company announced on Monday that its 2021 global sales stood at 3.89 million vehicles against the company's target of selling four million vehicles. For 2022, the South Korean automaker aims to attain a sales target of 4.32 million vehicles.

Hyundai in a statement said that this year the company will focus to expand its market share and will put in efforts to strengthen its profitability by stabilising semiconductor supply and its demand. It added that the brand will also adjust vehicle production schedules, strengthen electric vehicle lineups along with optimising sales profit and loss by region.

In October last year, the automaker had to cut its 2021 global sales target by 4 per cent that is it brought it down to four million from 4.16 million vehicles because of the ongoing semiconductor shortage.

Compared to its global numbers, Hyundai Motor India sales number flared well in the country in terms of total wholesales. The company reported double-digit growth in the total number of wholesale units last year against 2020. The brand shared that it is expecting to continue the momentum this year as well with the help of positive factors such as improvement in the availability of semiconductors.

Hyundai Motor India Director (Sales, Marketing and Service) Tarun Garg reportedly stated that the company is entering 2022 with cautious optimism. “There are more positives than negatives and we are looking to a better year with so much of the customer booking backlog. Besides, our product line-up is refreshed," he added.

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The automaker shared that the total dispatches increased by 21.6 per cent in 2021 to 6,35,413 units against 5,22,542 units in 2020. It also added that it made sales of 5,05,033 units in the domestic market last year, which saw a rise by 19.2 per cent from 4,23,642 units in 2020.

(With inputs from Reuters)