Hyundai Motor(005380) will begin delivering the Elantra eighth-generation model (CN8), "The all-new Elantra," to customers starting in the last week of this month. The delivery schedule for the backlogged hybrid model orders will be set for Oct. this year.
However, the prolonged strike phase due to difficulties in this year's wage and collective bargaining talks between Hyundai Motor labor and management is expected to be a variable. Hyundai Motor has experienced production disruptions due to a union strike that has continued since last month.
According to the finished car industry on the 14th, Hyundai Motor recently finalized the specifications for the first-day contract volume of The all-new Elantra and set this delivery plan. While aligning with the previously announced delivery plan for the gasoline model (third quarter) and the hybrid model (fourth quarter), it set the schedule as quickly as possible.
If deliveries of The all-new Elantra begin, Hyundai Motor's struggling results are also expected to rebound. Although the new Elantra drew controversy over its pricing strategy as the price rose by 3 million–4 million won compared with the previous model, 11,094 contracts were signed on the first day of orders.
In particular, the share of contracts for the top-tier Inspiration trim, which is well over 30 million won, was high, and the share for the hybrid model, which is more than 5 million won pricier than the gasoline model, doubled compared with the previous model.
By trim, contract shares for The all-new Elantra's gasoline models were Inspiration 43%, Modern 30% and Premium 27%. For the hybrid model, they were Inspiration 64%, Premium 21% and Modern 14%. By powertrain, gasoline accounted for 72% and hybrid 28%.
The industry also expects Hyundai Motor to achieve improved second-half results by focusing on sales of high value-added models such as hybrids, along with the new car effect. Hyundai Motor's operating profit in the second quarter of this year was 2.8509 trillion won, down 20.8% from the same period last year. Revenue rose 1.9% in the same period to 49.2153 trillion won.
According to FnGuide, Hyundai Motor's third-quarter revenue consensus for this year is 49.0889 trillion won, up 5.1% from a year earlier, and operating profit is 3.1143 trillion won, up 22.7%. Lee Sang-hyun, a researcher at BNK Investment & Securities, said, "Hyundai Motor is expected to see a gradual (performance) recovery through normalization of production in the second half and new model momentum."
However, the continued strike by Hyundai Motor's union appears likely to act as a variable. The union staged partial strikes of 2–4 hours over nine days in three rounds just last month, causing production disruptions of more than 42,000 vehicles. Revenue losses are estimated at 1.12 trillion won.
The union launched its fourth strike of the year on the 12th, and on this day held a six-hour partial strike, a step up from before. The union also announced a six-hour strike on the 18th, but it put the strike on hold after agreeing with management to hold the 16th main round of talks.
At the point of sale, customers who intend to buy are being advised to sign a contract quickly to ensure smooth delivery. Because delivery order is determined by the date and time the contract is entered, it is advantageous to proceed with the contract and then decide on the specifications before the strike's impact fully takes hold.
A sales staff member at a Hyundai Motor dealership said, "For now, deliveries will start as scheduled, but if the strike drags on, it will affect subsequent timelines," adding, "If you need to get the car quickly, the way is to sign the contract first and then consider the specifications."