[ANALYST REPORT] Hyundai Motor: Gradual demand recovery

 2Q operating profit estimated at W1.69tr (-3.2% YoY)Hyundai Motor is expected to post 2Q16 sales of W23.6tr (+3.2% YoY) and operating profit of W1.69tr (-3.2% YoY, 7.2% margin). Domestic sales amounted to 120,000 units (+2% YoY) through May, but total domestic shipments came in at 300,000 units (-8% YoY) as exports went down 13% YoY 180,000 units.Domestic shipments, however, improved markedly from 1Q16 when there were concerns over capacity utilization rates. Domestic plant shipments stood at 2

June 15, 2016

Global EV market to grow 60% this year: report

[THE INVESTOR] The global electric vehicle market is predicted to grow around 60 percent this year and next year amid global efforts to boost the green car industry, according to market data Tuesday. According to Japanese market research firm B3, the volume of the global electric car battery market is expected to grow 66 percent this year to 16,000 kilowatt-hours from the previous year. This is a 23 times increase over the past seven years, compared to 1,140 kilowatt-hours in 2010. The figure is

June 14, 2016

Hyundai to recall Tucson SUV

[THE INVESTOR] Hyundai Motor Co. on June 14 announced a recall of the compact sport utility vehicle Tucson manufactured between May 2015 and March 2016. According to the company, Tucson vehicles produced over the period may experience their hoods coming open due to a fault in the secondary latch.  Hyundai Tucson.The company said that due to the fault, the hood may pop open while on the move if the primary latch is not properly fastened. The affected vehicles were all produced in Korea. The compa

June 14, 2016

Kia to recall Carnival minivan in U.S.

[THE INVESTOR] Kia Motors Corp. revealed on June 14 that fault has been found with the hood latch of the minivan Carnival produced between June 2005 and April 2015. Due to the fault, Kia will recall nearly 220,000 units of the minivan, sold as Sedona in the U.S.The company said that the secondary hood latch may fail to operate due to corrosion. It added that such corrosion was mainly found in those in areas of the U.S. with heavy winter snows and that similar cases have not been reported in Kore

June 14, 2016

[KOSDAQ Star] Autech -- small, but big, special vehicle-maker

[THE INVESTOR] Driving down the road, when suddenly an ambulance screeches by with red sirens flashing and calling out to clear the way, another driver would naturally see that the special vehicle belongs to a nearby hospital, without thinking about where it comes from.Actually, almost all of the ambulances on the road speeding by in Korea come from the KOSDAQ-listed tech company Autech.Autech ambulance (Autech)It not only makes ambulances with auto partners such as Hyundai Motor and Kia Motors,

June 14, 2016

Prosecutors summon VW exec over emissions scandal

South Korean prosecutors said Monday they had summoned an executive of Audi Volkswagen Korea for questioning on charges against the automaker that include selling cars that had not received required certification and fabricating test results on fuel efficiency. The executive in charge of certification of the Korean arm is reportedly to be summoned at least three to four times for testimony. During the investigation, he may become a suspect, industry watchers said. This is the first probe into th

June 13, 2016

Samsung SDI shares rebound after Musk remarks

[THE INVESTOR] South Korean battery-maker Samsung SDI’s shares rebounded Thursday after Tesla Motors chief executive Elon Musk said the Korean firm may supply batteries for its energy unit. Earlier on Wednesday, Samsung SDI’s shares had tumbled 8 percent, as Musk denied news reports that Tesla would procure batteries for its electric vehicles from the Korean battery-maker. YonhapHe tweeted, “Would like to clarify that Tesla is working exclusively with Panasonic for Model 3 cells. News articles c

June 9, 2016

Continental may participate in bidding for Kumho Tire

German automotive firm Continental AG’s interest in acquiring local tire company Kumho Tire has increased the pressure on Kumho Asiana Group chairman, as he has to solely prepare around 1 trillion won ($8.6 billion) to reacquire the firm. Local news reports said Tuesday Continental is in talks with financial investors to participate in the bidding for the Korean tire company, citing sources from the creditors of Kumho Tire. Other global firms, including French tire firm Michelin and Chinese stat

June 8, 2016

GM, Hyundai look to affordable fun-to-drive car market

Mass market auto brands like Chevrolet of General Motors and Hyundai of Hyundai Motor are paying keen attention to growing demand for performance cars that are designed for speed and have affordable prices in Korea as part of their new market development efforts. Luxury foreign brands such as BMW and Mercedes-Benz as well as super car brands including Porsche and Lamborghini have dominated the performance car market for years.2016 Chevrolet Camaro of General Motors“The performance car market is

June 5, 2016

`VW expects to start recall in Korea this summer’

BUSAN -- A representative from the Korean unit of emissions-rigging scandal-marred German carmaker Volkswagen said the company is set to submit software to the Korean Ministry of Environment to fix about 125,000 affected vehicles, a critical step to push for its recall plan here.“The software will be presented in the near future (to the ministry). Once the software is tested and approved by the ministry as planned, we expect the recall can start this summer,” Volkswagen Korea CEO Thomas Kuehl to

June 2, 2016

Diesel cost may rise, gasoline price likely to fall: report

Sales of diesel cars may be hit as the government is reviewing raising diesel fuel costs and lowering gasoline prices amid growing concerns on toxic nitrogen oxide emitted by diesel engines, according to news reports Tuesday. “The government is considering raising diesel fuel costs and lowering gasoline prices to remove economic benefits going to diesel car owners,” a local media outlet reported, citing a senior government official of the environment ministry. (Yonhap)The speculation on lowering

May 24, 2016

Tesla in talks with Mando for self-driving cars: report

Korean parts-maker Mando Corp. has partnered with Tesla Motors to jointly develop key technologies for the automaker’s future autonomous vehicles, according to local reports Monday. Mando began developing fail-safety technologies for the U.S. electric carmaker’s autonomous vehicles in the second half of last year, Maeil Business Newspaper reported.(Bloomberg)The fail-safety technology allows a car to continue its self-driving mode even in times of emergency without requiring drivers to take the

May 23, 2016

Car wash service reborn with mobile platform

Mobile app-driven new businesses are budding in the automotive after sales and service market, drawing the attention of investors focusing on start-ups, and the car wash business is no exception. The car wash sector in Korea, which is crowded with small players, has recently seen a resurgence as an online-to-offline business.“An O2O car wash mobile application, matching an offline service provider with a customer regardless of time and place, tremendously saves the customers’ time without any ad

May 23, 2016

Demand for camping cars growing in Korea

The demand for recreational vehicles is on the rise in Korea, with more young families seeking to enjoy convenient outdoor leisure activities during their holiday breaks. The local camping car market, which was initially formed with imported trailers from 2010, gained momentum in 2013 with the launch of the motorhome Starex camping car by the nation’s largest automaker Hyundai Motor.Airstream's Caravan (Bluebird Enterprise)Sales of recreational vehicles in the local auto market have jumped to ro

May 22, 2016

Hyundai hires 2nd Bentley designer for Genesis brand

Hyundai Motor said Monday that it had roped in another former designer from British luxury carmaker Bentley for its new luxury Genesis brand, as part of its drive to move higher up the automotive value chain. “Korean-born and world famous car designer Lee Sang-yup, who headed the exterior design for Bentley, will make a new start at Hyundai’s design center from next month,” a Hyundai Motor Group spokesperson said, adding Lee will play the same role for Genesis cars as a vice president. Lee Sang-

May 16, 2016

Is imported car market losing steam?

Alarm bells are ringing in the imported foreign car market that has enjoyed double-digit on-year growth over the past six years, as sales have declined by 4 percent in January-April from the same period last year.Industry watchers said the downward trend has resulted from weaker sales of the three German car brands which dominate the market, growing distrust of inconsistent vehicle pricing and a stricter law on taxation of company vehicles. Among them, the slowdown of diesel-powered German car s

May 15, 2016

Hyundai Motor unveils wearable robot technologies

The nation’s largest automotive company Hyundai Motor Group offered a peep into its wearable robot technologies. Photos, posted on the group‘s blog Friday, show wearable suits like those seen from “Iron Man” movies, although Hyundai’s don‘t cover the whole body. The wearer’s physical strength increases by simply donning them, according to the company. “The wearable robots, being developed with the aim of mass production, can be used for various purposes,” Hyundai Motor Group’s spokesperson told

May 13, 2016

Carmakers resurrect old cars

Carmakers that do business in Korea are pushing customer programs related to classic cars in a bid to increase customer satisfaction and boost car sales. German luxury carmaker Mercedes-Benz is leading the trend. It has launched a restoration program for old cars under the slogan “Could after sales service also evoke memories?” as part of its customer service efforts. During the 2016 Service Experience Day event, held last Friday at its new service center in Yongin, Gyeonggi Province, the compan

April 17, 2016