The creator is an analyst of NH Funding & Securities. He may be reached at email@example.com. — Ed.
By means of our current go to to HMC’s US plant, we confirmed each the expansion potential of its future-oriented companies (Boston Dynamics, Motional) and its improved competitiveness within the present US market (HMA, HCA). The agency is about to get pleasure from structural development within the US market (2025 targets: gross sales of 1mn models, market share of 6%) in keeping with improved product competitiveness and profitable enterprise construction transformation.
Evidencing structural enchancment in US market; agency targets 2025 gross sales of 1mn models, market share of 6%
Having visited HMC’s main US enterprise services over Nov 14~18, we have been in a position to affirm each the expansion potential of its future-oriented companies (Boston Dynamics, Motional) and the improved competitiveness of its current US market companies. To examine on HMC’s US enterprise methods and to evaluate shopper model preferences, we additionally visited US gross sales subsidiary Hyundai Motor America (HMA), monetary subsidiary Hyundai Capital America (HCA), Hyundai Motor dealerships, and the LA Auto Present.
Expressing confidence in its future enterprise prospects, HMA informed us that its current efficiency within the US market isn’t a short lived phenomenon, however slightly tangible proof of structural enchancment (ie, rising product competitiveness and shopper consciousness). Additionally boding nicely is HMC’s strengthening competitiveness within the EV market through the profitable introduction of HMG’s EV platform (E-GMP). In a interval of trade transition course of, we imagine that HMC is extra efficiently implementing an EV conversion technique than its Japanese rivals. Though there are some uncertainties in play because of the passage of the US’s Inflation Discount Act (IRA), when contemplating varied situations akin to product competitiveness, we decide the enlargement of HMC’s provide capability as being a extra vital variable for its US market EV gross sales than tax credit score modifications.
Making ready future development companies
Though monetization in earnest nonetheless wants some extra time, we positively view autonomous driving firm Motional and robotics gamers Boston Dynamics as future development drivers for the Hyundai Motor Group (HMG). Motional lately partnered with Uber to broaden its Ioniq 5-based robotaxi area. And, Boston Dynamics is continuing easily with its improvement/commercialization methods for each Spot (quadrupedal strolling robotic) and Stretch (logistics robotic). Already boasting glorious mechanical capabilities, Boston Dynamics plans to beef up its AI capabilities going ahead via each synergies with HMG and the institution of a analysis heart (Boston Dynamics AI).