Automakers See Sluggish May Sales, but "Robotics Momentum Deserves Attention"

Hyundai Motor Faces Domestic Slump Due to Supplier Fire
Kia Outperforms at Home and Abroad With Electric Vehicles
"Robotics Momentum in June to August Warrants Attention"

Mirae Asset Securities stated on June 3 that while the wholesale sales performance of finished car manufacturers in May fell short of expectations, attention should be paid to the upcoming momentum related to artificial intelligence (AI) and robotics.

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Hyundai Motor's wholesale sales in May totaled 325,000 units globally (down 7.7% year-on-year), with 45,000 units sold domestically (down 23.1%) and 280,000 units sold overseas (down 4.6%). All figures showed a decrease compared to the same period last year. Adjusting for the one fewer business day in the domestic market, domestic sales declined by 19% year-on-year. For domestic sales, the fire at Daejeon Safety Industry, a parts supplier, at the end of March had an impact, while for overseas sales, sluggish performance in Europe and sales disruptions in the Middle East were cited as factors.

Kia's wholesale sales for the same month were relatively robust, recording 278,000 units globally (up 2.7%), 45,000 units domestically (down 0.6%), and 233,000 units overseas (up 3.4%). After adjusting for the one fewer business day, domestic sales increased by 5% year-on-year. The key difference from Hyundai Motor was the electric vehicle segment. With a broader electric vehicle lineup, the impact from Safety Industry was limited, and the new model effect from electric vehicles such as the EV5 and PV5 continued. While overseas sales were also affected by the Middle East, the sales of new electric vehicle models in Europe appear to have supported the numbers.

The fire that broke out on May 31 at Hyundai Mobis' plant in India is another issue to watch. Hyundai Motor's listed Indian subsidiary stated in a disclosure that temporary production disruptions would occur due to supply issues with audio systems and certain parts, but it has sufficient inventory on hand.

Mirae Asset Securities emphasized that, in the short term, attention should be paid to the robotics momentum scheduled for June to August. With Nvidia CEO Jensen Huang's visit to Korea scheduled for June 5, there is a need to monitor progress in graphic processing unit (GPU) supply to Hyundai Motor Group as well as advancements in autonomous driving collaborations (Hyperion and Alpha Mayo).

In addition, changes in the ownership structure of Hyundai Motor Group’s robotics subsidiary, Boston Dynamics, are anticipated due to the SoftBank put option (early redemption right) in June and Hyundai Motor Group’s call option (early redemption right) in July. Jinseok Kim, a research analyst at Mirae Asset Securities, commented, "The probability of investment from a strategic investor (SI) is considered high."

In August, the U.S. Robot Meta Plant Application Center (RMAC) is scheduled to begin operations, and Hyundai Motor Group's CEO Investor Day (CID) is set to take place in the third quarter. Kim also stated, "Attention should be paid to the equity structure and groundbreaking timeline of the local U.S. robot manufacturing subsidiary RA (Robotics in America)."

This content was produced with the assistance of AI translation services.