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Non-Voting Hyundai Motor Co. Ltd.
Hyundai Motor Co., Ltd. produces and sells motor cars and their components. It conducts business in the following sectors: Financial, Vehicle, and Others. The division of vehicles provides automobiles. The financial division offers credit cards, leasing, and financing. Manufacturing of railroads is included in the Other section. The company’s headquarters are in Seoul, South Korea, and it was established on December 29, 1967.
Summary
- The Hyundai Santa Cruz is the most recent illustration of a brand-new, cutting-edge car model that supports Hyundai’s growing reputation among car purchasers for quality, affordability, and attractive design.
- Hyundai stock (HYMTF shares) trades infrequently over the counter as American Depositary Receipts, which is a sign of the low level of interest among American investors in a business that may gain from its expanding success.
- The automaker would gain from improving its reputation as an investor, increasing payouts, and increasing buybacks to support its long-term value proposition and growth narrative.
- Looking for additional suggestions for investments like this one? Purchase them only through Auto/Mobility Investors. Find out more A>>
A sector of the investing market that was formerly dominated by large, capital-hungry automakers whose fortunes fluctuated with economic cycles while providing investors with meager long-term returns has gained appeal because to electrification and the potential of autonomous driving technologies. Innovators like Ford Motor (F) and General Motors (GM) are being encouraged to speed their technological endeavors by Tesla (TSLA) and a wave of battery-electric vehicle (BEV) startups, making them more appealing to stock pickers.
The Korean chaebol Hyundai Motor Group (OTCPK:HYMTF), which owns the Kia and Genesis brands, has developed into a fierce global competitor by fervently committing to electrification with BEVs and hydrogen-powered fuel cell vehicles. It also has an ambitious focus on the newest safety and digital technologies (FCVs).
Can one purchase Hyundai shares in the US?
How can I get Hyundai Motor stock? Any online brokerage account may be used to buy shares of HYMTF stock. WeBull, Vanguard Brokerage Services, TD Ameritrade, E*TRADE, Robinhood, Fidelity, and Charles Schwab are well-known online brokerages providing access to the American stock market.
Why is the stock of Hyundai so low?
The shares of Hyundai Motor Co., the largest automaker in South Korea, are likely to increase. When compared to its 52-week low of 162,000 won ($133.77) on March 15, the stock increased by 11.73%, rising 2.55% to 181,000 won ($149.46) on March 30.
In the ten trading days leading up to March 29, foreigners took the lead in the recovery, purchasing shares worth a net 31 billion won. On the other side, over the same time period, individuals and institutions sold a net amount of shares of 25.7 billion won and 3 billion won, respectively. Between March 2 and March 15, foreign investors sold shares of the automaker worth more than 300 billion won.
Since the second half of 2021, Hyundai Motor’s market share has decreased as a result of worries about inflation, chip shortages, interest rate increases, and the Russia-Ukraine conflict. On June 24, 2021, the stock price reached a 52-week high of 249,000 won. On March 15, it fell by 35% to 162,000 won.
The stock appears to have captured the mood of the market and is about to recover. With the decline in the price of oil and hopes for peace talks between Russia and Ukraine, the worries have subsided. Additionally, the short-term performance of the automobile is anticipated to benefit from the weakening of the Korean won.
Even if industry observers predict a little improvement in the shortfall in the second half of this year, the chip shortage problem is still not showing any signs of improvement. Some market observers predict that the low supply problem would last beyond 2022. However, observers believe that the chip shortage issue has already been reflected in the auto stocks and won’t worsen any more.
The stock price is rising as a result of favorable valuation and market expectations for Hyundai Motor’s success. In response to the supply chain issue, the carmaker has enhanced its pricing strategy by raising the prices of finished cars and raising sales of premium car models.
“The average selling price (ASP) increase at Hyundai Motor will help the company’s performance in the first half of 2022. Additionally, a further decrease from the current level of the stock price will be limited, “the analyst at Hyundai Motor Securities Co., Chang Moon-su, stated.
With 7.5 times of the 12-month forward price-to-earnings ratio, the valuation has improved. With low interest rates a year ago, the forward P/E ratio, which typically ranges between 8 and 10, reached 10 to 11 times.
The long-term growth of the Hyundai Motor stock will determine its potential. Investors haven’t been drawn to the automaker’s plan for its future mobility operations, according to market observers. Only 26% of the company is owned by foreign investors, which is a proportion comparable to the global financial crisis of 2009.
By developing more than 17 EV lineups by 2030, Hyundai Motor is hastening the transition to electric vehicles. Additionally, it intends to increase profitability by adopting “smart factories,” which are automated production facilities run by information technology and digital data. The operating profit goal for Hyundai Motor is 8% by 2025 and 10% by 2030. “The automaker needs to draw up more specific goals,” said Kim Dong-ha, an analyst at Hanwha Investment & Securities Co. The automaker’s mid- to long-term growth plan is desirable.
As a further potential growth engine, the automaker is creating robots. Hyundai Motor is the first manufacturer of finished vehicles to commercialize industrial wearable robots, including the CEX (chairless exoskeleton), which provides sedentary assembly workers with knee support, and the VEX (vest exoskeleton), a follow-up exoskeleton with support for the neck and shoulders. Last month, the parent company Hyundai Motor Group acquired temporary operating licences from the government for 193 of its self-driving taxis. Robots for EV charging and customer service are two more categories that are being developed.
Is it wise to own Hyundai stock?
At $33.90, cumulative volume provides support for Hyundai Motor Company. This level may present a buying opportunity because an upward reaction is anticipated when the support is challenged. The risk is viewed as medium for this stock due to its daily average fluctuation and high trading volume.
Which nation sells Hyundai the most?
India surpassed China in 2021 to overtake it as Hyundai’s largest market outside of Korea for retail vehicles made in the nation. The accomplishment comes less than four years after Hyundai designated India as its regional headquarters, giving it additional functional autonomy.
India continued to top the world in sales during the January to March quarter, getting the closest to ever surpassing Korea, Hyundai’s largest and home market.
According to data released by Hyundai Motor Company (HMC), the joint venture Beijing-Hyundai Motor Company (BHMC) had sales of 350,277 units in the same year as Hyundai Motor India (HMI), which is a 100 percent subsidiary of HMC. China was HMC’s largest market for locally built cars outside of Korea until 2020.
Despite the fact that the US is Hyundai’s largest foreign market, more than half of the country’s car sales are of imported models. The company also has a plant in the US, but it only manufactures and sells slightly more than half of what HMC recorded as total sales in that nation.
For Hyundai, demand from India grew faster than the automaker’s overall global market growth in 2017. Sales of HMI increased by 19% in 2021 compared to the 423,642 sales recorded in 2020. In comparison to 2020, the Chinese market shrank by 20% in 2021 to 350,277 units.
The market has changed from the “little is beautiful” to the “large is better” mindset, according to an expert following the Indian auto industry.
Hyundai launched the Creta and Alcazar, two new SUVs, in India in 2020–2021 and will follow this up with the Tucson SUV later in the year. The Creta is Hyundai’s best-selling vehicle.
With domestic production, Suzuki Motor Corporation and Hyundai Motor Company now have India as their largest market. The two businesses have 60 percent of the Indian market for passenger cars.
Suzuki (Maruti Suzuki) and Hyundai are becoming more important in India amid a string of automakers leaving the nation, the most recent being Nissan-owned Datsun. The other brands and businesses that left India in the previous five years were Ford, General Motors (Chevrolet), and Fiat.
Due to a lack of semiconductors, automakers like Maruti Suzuki and Hyundai have found it difficult to keep up with demand. An estimated 7,50,000 orders, or three months’ worth of sales, are still pending in the auto business.
Which nations sell Hyundai vehicles?
With more than 810,000 car sales in North America in 2020, Hyundai Motor Company led the industry. With roughly 454 thousand and 440 thousand respectively, Europe and Turkey came in second and third place, respectively, before China. In that year, Hyundai sold over 2.96 million automobiles all over the world.
Has Kia acquired Hyundai?
No, but Hyundai and Kia are connected! In 1997, Kia declared bankruptcy after becoming a stand-alone autonomous company. In 1998, Hyundai Motor Group made the decision to buy the automaker in order to keep it viable. Although Kia and the Hyundai Motor Group don’t work together, Hyundai is Kia Motors’ parent company.
With whom does Hyundai have a partnership?
- Partnership will launch fresh joint initiatives centered on the switch to clean mobility and carbon reduction.
- Partners intend to launch new service channels abroad and begin working together to expand their energy supply business into EV and FCEV charging services.
Hyundai Motor Firm and Royal Dutch Shell plc, the global energy company known as Shell, have inked a new, five-year global business cooperation agreement.
… but with a fresh mobility twist this time. Online signing took place at the Hyundai Motorstudio in Goyang, Korea.
This time, we’ll work together to implement clean mobility solutions that will advance society. By partnering with Shell, we will maintain our transition to being a provider of smart mobility solutions while maintaining our competitiveness within the automotive sector.
Un Soo Kim, Senior Vice President and Head of Hyundai Motor Company’s Global Operations Division
The cooperation has now been extended a fourth time, through 2026, but this time there is a new emphasis on renewable energy and carbon reduction in response to market developments.
With the new contract, Hyundai is hoping to boost its environmentally friendly production and keep evolving into a Smart Mobility Solution Provider. Additionally, Shell will play a bigger part in offering Hyundai greener mobility options.
Collaborative pioneers who are prepared to act now and create the alignments necessary to provide a cleaner energy future will be needed to accelerate the transportation sector to net zero. We think the greatest way to improve Hyundai’s customer service is by utilizing our knowledge of EV charging and our in-depth insights gained from regular contacts with drivers at our 46,000 retail locations across the world.
The collaboration will work on joint initiatives that reflect this new orientation, such as a scheme to set up new kinds of service channels tailored for mobility service providers, mainly in Asia. Both businesses will also talk about energy supply business partnership plans, like EV and FCEV charging services.
Hyundai and Shell’s extensive partnership is based on a shared goal to use technology to facilitate the energy transition. The global collaboration agreement precludes Hyundai from changing its global aftermarket network’s advice to use Shell lubricants. The two businesses collaborate on research and development projects, such as those for first-fill lubricants to fulfill Hyundai’s unique engine needs. Future projects could include e-Fluids for electric vehicles.
As the Hyundai Shell MOBIS World Rally team strives for a second straight victory, Shell, the No. 1 lubricants supplier in the world for fourteen years running, continues to collaborate with Hyundai Motorsport in the FIA World Rally Championship (WRC) competition. This competition serves as a testing ground for the development of advanced lubricants.
The Hyundai Motor Group Innovation Center in Singapore will have its business operations and production processes digitalized thanks to a cooperation between TeamViewer and Hyundai Motor Company announced today.
The first IVECO eDAILY Fuel Cell Electric Vehicle was launched today at IAA Transportation 2022 in Hannover by Hyundai Motor Company and Iveco Group.