Hyundai Motors Co said they expect their combined global sales to rise 12.1% in 2022, despite disappointing sales in 2021 due to the ongoing global chip shortage.
Both Hyundai and its affiliate Kia Corp sold 6.67 million vehicles in 2021, 3.7% below their target of 6.92 million vehicles, as the global chip shortage delayed deliveries.
The shortage, caused largely by inventory problems and rising demand for consumer electronics equipment triggered by the pandemic, has severely affected the automotive industry as millions of vehicles worldwide have been unable to complete their production process due to a shortage of vital spare parts.
Just last October, Hyundai Motors lowered its global sales target for 2021 by about 4% to 4 million cars, instead of the 4.16 million originally forecast.
Despite this, both carmakers expect global sales of 7.47 million vehicles this year.
Eugene Investment & Securities analyst Lee Jae-il, predicts that demand for vehicles will remain robust in 2022, reflecting huge demand from consumers who were unable to purchase vehicles last year because of the shortage.
Other car companies have felt the affects of the shortage as well. Daimler Chief Technology Officer Markus Schaefer is expecting chip supply to remain volatile this year, especially in the first half of 2022.
Daimler, about to be renamed Mercedes-Benz, reported 23.9% fewer cars in October 2021 than the previous year and 21.8% fewer cars in November, a decline largely because of the impact of the chip shortage.
For more information, read the original story in Reuters.