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Hyundai, Kia expects increase in auto sales in 2022

Hyundai Motor and affiliate Kia Motors on Monday said that their combined global sales will increase 12.1% in 2022, even as last year’s sales couldn’t meet the sales target due to the chip shortage crisis.

The automakers sold 6.67 million vehicles in 2021, about 3.7% less than their overall target of 6.92 million vehicles, largely because of supply problems including the chip shortage.

They said they would target worldwide sales of 7.47 million vehicles this year.

“In 2022, Hyundai Motor prepares to expand its market share and strengthen profitability through efforts to stabilize chip supply and demand, adjust vehicle production schedules, strengthen electric vehicle lineups as well as optimize sales profit and loss by region,” Hyundai Motor said.

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

The chip shortage, which has hit automakers worldwide, emerges from a confluence of factors as automakers, which closed plants for two months during the coronavirus pandemic in 2020, rival against the sprawling consumer electronics industry for chip supplies. A factory fire suffered by Japanese chipmaker Renesas last year is also cited as a reason behind the chip shortage.

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