How Is Hyundai Beating the Auto Sales Slump?
Despite slow sales, South Korea’s largest automaker boosted its profits by 19%. What gave the company its edge?
Written by Andrew Koole
Reviewed by Kathleen Flear
Manufacturing and selling
new cars
in 2022 is a tricky business. Supply chain troubles, commodity prices, and the microchip shortage
have made production costs and sale prices rise, slowing demand from consumers. How did Hyundai’s profit rise so much?
Reuters
says South Korea’s currency, the won, dropped in value by 7% compared to the U.S. dollar in the first quarter of 2022. So when Americans bought the company’s vehicles, the exchange rate boosted Hyundai’s profits.Actions taken to counteract the pressures put on the international auto industry also contributed to Hyundai’s profits. To handle the effects brought on by the
war in Ukraine
and COVID-19, Hyundai cut down on sales incentives and marketing expenses, helping them save money.Let Jerry find your price in only 45 seconds
No spam · No long forms · No fees
New models built by Hyundai
Auto sales may have slowed in recent months, but a few of Hyundai’s new models have helped the company weather the storm, thanks to excellent reviews. Nine of the brand’s 2022 models received Car and Driver’s “Editor’s Choice” badge.
Kia, its other mid-range brand, fared pretty well, too, garnering six “Editor’s Choice” nods and one “10 Best” award for the Telluride, Kia’s full-size SUV, which received a perfect score from the magazine.
In the luxury department, Hyundai’s track record was even more impressive. The whole Genesis 2022 lineup made the “Editor’s Choice” list.
The company lags behind the industry a little in the push toward electrification, but all three brands plan to move forward in 2023. By 2024, at least 12 alternative-fueled or electric vehicles made by Hyundai will be available in the U.S.
MORE: How a Hyundai 2 Door Coupe Saved the Car Brand's Reputation in the U.S.
The cost of owning a Hyundai
Starting prices for Hyundais range from a little over $20,000 for a Venue to over $60,000 for the hydrogen-powered Nexo. And while
car insurance
averages out to $1,852 a year, premiums tend to follow rise and fall with those prices.But the make and model of your car isn’t always the strongest indicator of the cost of car insurance. More often than not, the provider you choose makes just as much, if not, more of a difference to your annual rates as the kind of car you drive.
That’s why shopping with Jerry can save you so much money. A licensed broker that offers end-to-end support, the
Jerry
app gathers affordable quotes, helps you switch plans, and can even help you cancel your old policy. The average Jerry user saves over $800 a year.Are you overpaying for car insurance?
Compare quotes and find out in 45 seconds.
4.7You might also be interested
