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HYUNDAI and Kia are jointly expecting a 12 per cent jump in sales this year as the duo gets its arms around irritating production problems, including the semiconductor shortage, which trimmed deliveries last year by almost four per cent.

The two companies, which globally post combined sales figures, sold 6.67 million vehicles in 2021, about 3.7 per cent less than their combined target of 6.92 million vehicles for the year.

The companies said they are now targeting global sales of 7.47 million vehicles in 2022.

Hyundai Ioniq 5

In a statement made last week, the companies said that in 2022 they plan “to expand  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”.

The chip shortage, due to supply problems and a surge in demand for consumer electronic gadgets during the pandemic, has hit the auto industry hard, with millions of vehicles worldwide not being produced because important parts are unavailable.

Automotive News Europe reported analysts as saying the 2022 target seemed reasonable.

Eugene Investment & Securities analyst Lee Jae-il said he expects demand for vehicles to stay strong this year underpinned by pent-up demand from consumers unable to buy vehicles last year due to supply shortages.

“It appears that the chip shortage has been showing some signs of easing … however, rising raw material prices would likely have an impact on their profitability,” Mr Lee said.

Hyundai aims to sell 1.7 million EVs in 2026 covering the Hyundai, Kia and Genesis brands, an extension of the earlier goal of one million units worldwide in 2025.

In 2021, the group launched the Hyundai Ioniq 5, Kia EV6, Genesis GV60 battery-electric vehicles, all based on the company’s new E-GMP electric-only platform. Its EV launches this year include the Ioniq 6.

Kia EV6

By Neil Dowling

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