Good afternoon. I'd like to thank all the attendees today. Welcome to Q4 2023 HMC earnings call. You can download the presentation material at dart.fss.or.kr or www.hyundai.com on the IR section menu. For today's conference call, we have Seung Jo Lee, SVP of Planning and Finance Division, Zayong Koo, SVP of IR Group, SVP of Hyundai Capital, Hyung-Seok Lee, and Head of IR Team, Tae-Sik Yoon. For today's conference call, HMC will announce its results, followed by a Q&A session. If you have a question, press start and number one on the telephone keypad after the presentation. I'll now turn it over to Michael Yoon, Head of Investor Relations Team.
Good afternoon. I am Michael Yoon, Head of IR Team. Welcome, everyone, to HMC's 2023 Q4 earnings call.
On behalf of Hyundai Motor Company, I appreciate your time for participating, and please refer to the presentation HMC 2023 Q4 business results on our IR website. For today's presentation, we have sales and financial summary, and for specific sales by region and statement of cash flows, please refer to the appendix page. First is our sales summary. Our 2023 Q4 global wholesale increased by 4.9% year-over-year to 1,889,862 units, while retail sales increased by 6% year-over-year to 1,084,555 units. In Q4, our wholesales increased due to strong sales in advanced markets such as North America and Europe.
In our Korea market, sales increased by 3.4% year-over-year due to SUV sales expansion with the launch of the new Santa Fe in August last year, and strong sales of eco-friendly vehicles, thanks to the new hybrid models introduction. In North America, wholesale increased by 9.8% year-over-year, with the strong sales led by high-value models. In the U.S. market, wholesales increased by 7.9% year-over-year, recording highest sales ever, owing to product enhancement of Genesis and SUV models. Despite the uncertainties in the U.S. market, EV sales also increased, including IONIQ 5, by actively taking sales strategies for lease and fleet. In Europe, wholesales exceeded the annual business plan and increased by 19% year-over-year due to new launch of KONA, a hybrid.
In India, wholesales increased by 9.4% year-over-year and had stable sales in SUV segment with the launch of micro SUV EXTER in July. Our 2023 global wholesales increased by 6.9% year-over-year to 4,216,898 units, while retail sales increased by 4.9% year-over-year to 4.1 million units. Next is sales by model and key status. Global SUV sales portion increased by 4 percentage points year-over-year to 55.2% due to global launch of new Santa Fe and Santa Fe Hybrid. Sales of eco-friendly vehicles increased by 27.7% year-over-year due to the expanded lineup of hybrid vehicles.
Especially in Korea, hybrid portion increased by 3.3 percentage point year-over-year to 9.5% due to strong sales of Grandeur, KONA, and Santa Fe Hybrid. Next is annual sales by model. Our SUV portion increased by 2.4 percentage point year-over-year to 53.9%, while the penetration of Genesis brand maintaining 5.3%. Despite the slowdown in global EV markets, annual sales of eco-friendly vehicles recorded 700K, an increase by 37.1% year-over-year. That is the end of presentation on sales summary, and now I'll move on to financial summary. This is income statement summary. As disclosed today, fiscal year 2022 and 2023 income statements have been changed, reflecting the discontinued operation of HMMR.
The detailed information will be provided through the further disclosure, and in this conference call, impacts from the discontinued operation for the fiscal year 2022, 2023, annual income statements, and the 4Q 2022 and 4Q 2023 income statement will be delivered. Consolidated revenue increased by 8.3% year-over-year to KRW 41.7 trillion, and operating income increased by 0.2% year-over-year to KRW 3.5 trillion. The automotive business revenue increased 6.1% year-over-year due to increased volume, mix improvement with high margin vehicles. The operating profit margin on a consolidated basis increased by 3.1% year-over-year. Finance division revenue increased by 29.7% year-over-year due to strong sales of vehicles and growth in penetration rate.
Nevertheless, operating income decreased by 32.1% due to high interest rate. Net income, continuing operation base, increased by 29.1% year-over-year to KRW 2.7 trillion. Loss of discontinued operation due to sales of the Russian plant was KRW 457.3 billion, and net income reflecting the loss from the discontinued operation was KRW 2.2 trillion. Next is annual income statement. Annual consolidated revenue increased by 14.4% year-over-year to KRW 162.7 trillion, and operating income increased by 54% to KRW 15.1 trillion, with 9.3% operating profit margin. Annual net income increased by 58.4% year-over-year to KRW 13 trillion.
Annual loss from discontinued operations due to the sales of Russia plant was KRW 719.7 billion, and net income reflecting loss from discontinued operation was KRW 12.3 trillion. Next is revenue and operating income analysis. Volume impact from sales increase had an impact of KRW 1.6 trillion. Despite the increase of incentives, strong sales in North America and the increase in ASP had a positive impact on mix improvement, contributing around KRW 0.6 trillion. Despite the appreciation of Korean won, the revenue increased by 8.3% year-over-year, due to revenue increase in finance, business, and others.
Regarding operating profit, volume increased; increase led to a positive impact of KRW 318.5 billion, and also increased ASP and strong sales in advanced markets offset the increased incentive levels, leading to a positive mix improvement of KRW 888.9 billion. However, due to the appreciation of Korean won, operating profit increased by 0.2% only. Next is annual revenue and operating income analysis. Volume impact from sales increase had a positive impact of 8.2%, KRW 2 trillion, excuse me. And despite the increase in incentive level, product mix improvement led to a KRW 1 trillion increase. Revenue increased by 14.4% year-over-year, due to increase of average won to US dollar rate in 2023.
Regarding operating profit, volume increase effect had a KRW 1.7 trillion impact. Positive mix improvement effect that offset increased incentives had a KRW 2.8 trillion impact. Also, due to base effect of provision cost in Q3 2022, operating profit increased by 54%. Cost of goods sold ratio increased by 0.3 percentage point to 80%. SG&A increased by 11.7% year-over-year to KRW 4.9 trillion, due to increase of labor and R&D cost. Non-operating income had a decrease in loss and recorded KRW 149.8 billion, due to improvements of PL in finance, business, and others. Net income that includes loss from discontinued operations increased by 28.8% year-over-year to KRW 2.2 trillion, due to increase of operating profit.
Annual cost of goods sold ratio decreased by 0.7 percentage point to 79.4%, due to decrease in raw material prices. Despite the increase of labor and R&D cost, SG&A decreased by 0.5% year-over-year to 18.4 trillion KRW, due to decrease in provision cost. Non-operating income increased by 83.7% year-over-year to 2.5 trillion KRW. Net income increased by 53.7% year-over-year to 13 trillion KRW, due to increase of OP margin. This is the end of our Q4 2023 business results. Thank you. Now, Seung Jo Lee, SVP of Planning and Finance Division, will give us the evaluation on the fourth quarter results and the year-end dividend.
Good afternoon. I am Seung Jo Lee, SVP of Planning and Finance Division. I'd like to discuss the Q4 2023 business results.
In Q4, despite increased incentives, driven by slowing global EV demand and production normalization, and the IRA impact and currency appreciation, HMC achieved global wholesale of 1.09 million units, resulting in operating profit of KRW 3.4 trillion and operating profit margin of 8.2% on a consolidated basis. The product mix improved with stable sales of Genesis and stronger sales of high ASP models such as SUVs, and regional mix improved too, with robust sales in the U.S. and Europe. I'd like to now tell you about the sales volume.... Recently, the rapid growth of EVs in the automotive market has encountered a slowdown due to various macroeconomic uncertainty, including interest rate hike and inflation.
However, through the Hyundai Motorway announced at the CEO Investor Day in June last year, we are maintaining stable sales and profits by flexibly responding to market changes by utilizing our existing lineup of green vehicles, including hybrids and plug-in hybrids. Continued growth in emerging economies like India and Brazil also played a significant role in expanding our sales volume. We are aware of the ongoing concerns in the global automotive industry due to external factors. Despite the concerns, we continued to deliver solid growth in our key markets, including achieving record sales in the U.S. Therefore, we delivered 1.09 million in sales, up 4.9% from a year earlier and up 5% on a consolidated basis, excluding China. In Q4 of 2023, we saw the continued effect from the product mix improvement following prior quarters.
SUVs increased 4.4 percentage points year-over-year to 58.8%, our highest SUV share in a single quarter ever. Genesis remains a high-margin vehicle, contributing significantly to our consolidated operating profit. These high-margin vehicles accounted for nearly 60% of our total sales and will work to ensure that this product mix is sustainable going forward. In case of EVs, the worsening sales environment led to a year-over-year decline in sales volume in the fourth quarter, but we are maintaining a low single-digit profit based on the recent strong sales. Hybrids, which have significantly expanded sales during the EV downturn, are expected to continue their strong performance in the near term, with sales growth of around 60% year-over-year. Profitability is already on par with that of conventional ICE or even higher for some models.
The solid product mix improvement and flexible market response helped us deliver a solid fourth quarter despite an unfavorable currency environment. Turning to our full year results, sales were below guidance due to somewhat lower sales in emerging markets compared to our key markets, such as the U.S., Europe, and India, where we exceeded our business plan. But we significantly exceeded our targets at the beginning of the year, with sales of KRW 162.6 trillion, and operating margin of 9.3%, driven by continued product and geographical mix improvements and favorable currency impacts. Next is incentive that many of you may be concerned about. EV incentives we raised as part of our IRA response are stabilizing, and incentives for ICE vehicles in the U.S. have consistently remained below the industry average.
Moving forward, we'll continue to uphold the profitability-focused sales approach in our incentive policies. I'd like to conclude my presentation with a year-end dividend. In line with our mid to long-term shareholder return policy outlined in our Q1 earnings call, which includes quarterly dividends and the dividend payout ratio of 25% or higher of our consolidated net profit, will pay the year-end dividend. The end of the year dividend will be 8,400 KRW per common share, which is a 25% dividend payout ratio. Regarding the plan to cancel 1% of our existing treasury stock every year, we'll retire 1% this April. HMC will continue to endeavor to achieving over 25% dividend payout ratio based on stable results going forward. Thanks for listening.
Next is SVP Hyung-Seok Lee from Hyundai Capital.
On the 2023 business results and outlook for 2024. Hello, I am Hyung-Seok Lee, Head of Planning and Finance Division of Hyundai Capital. I'll report the full year 2023 business results and outlook for 2024 for the finance business. In 2024, we saw macroeconomic uncertainties in the market, such as economic downturn and high interest rate, while the finance business showed robust performance driven by HMG's strong car sales and solid auto finance portfolio, as well as our conservative risk management and outstanding liquidity management capacity. Even in the face of the capital market crisis, Hyundai Capital's domestic credit rating was elevated to double A plus, solidifying our position as a captive-owned auto financing company.
In 2024, we plan to optimize our business portfolio and thus enhance profitability, better manage our asset soundness against any credit risk, and expand global finance coverage with HMG in order to bolster our market leadership in the auto finance market. I'll now elaborate on the details of Hyundai Capital and HCA. First, Hyundai Capital. Based on the HMC's production normalization and subsequent sales increase, as well as strong market demand, our new auto volume increased 17% and asset grew 4% year-over-year.... Moreover, supported by the company's stable liquidity, we strengthened the sales support for HMG, expanding the auto finance share in our asset portfolio from 78% at the end of 2022 to 82% at the end of 2023.
In 2020, with more competitive retail products and growing lease demand for high-margin products, the cumulative operating revenue went up 18% in 2023. However, the rapid increase in interest rate and interest cost increased, combined with the overall bad debt cost increase in the financial market, operating profit and pre-tax income came down approximately 20%. In 2024, we expect uncertainties in the market, such as sustained high interest rates and global economic slowdown. Still, our plan is to focus on improving our fundamentals rather than expanding the size of the business through maintaining focus on auto finance, managing profitability, and proactively optimizing costs. Also, we'll continue to work with HMG affiliates for synergistic effects by expanding global coverage and providing financing for CPO vehicles with the aim of building a strong mid to long-term growth foundation.
Next is Hyundai Capital America, or HCA. With strong demand from American consumers, we saw both cumulative car sales and penetration rate go up in 2023, resulting in the auto financing volume up 53% year-over-year. Also, the mix improvement, led by SUV and continuous increase of average sales price, raised our financial assets by 12% year-over-year. In 2023, operating income was up 12% year-over-year. However, due to interest cost increase from high interest rates and rise in bad debt cost, operating expenses increased too, dropping the operating profit by 39% year-over-year. In terms of credit risk, the share of prime customer was raised to 89% in Q4 2023, defending our asset soundness, and issued global bonds worth $9 billion four times throughout 2023, proactively securing liquidity.
Next is our outlook on 2024. A soft landing is expected with lower inflation and falling rates, but uncertainties are still looming for 2024. Therefore, HCA will strengthen the management of residual values and borrowing portfolio to minimize the impact on our profit. Also, we'll foster better cooperation with HMG affiliates by supporting mobility business operations, improving financing, and EV sales support. This is all for my presentation. Thank you for your attention.
Next, Zayong Koo, Head of the IR Group of HMC, will give us the presentation on the guidance.
Good afternoon, I am Zayong Koo, I'm Head of the IR. Since 2021, we have been providing annual guidance for our automotive business, and since 2022, for our consolidated business as part of our business transparency efforts.
Throughout the year, we regularly update this guidance to reflect both internal and external changes in the business landscape. This practice aims to improve the visibility and confidence of our shareholders and investors in our performance. For 2024, our sales target is set at 4.24 million units, up 26,000 units year-over-year, as announced earlier this year, in line with global industry demand. Please see page two for sales targets by region. On a consolidated basis for 2024, we anticipate a sales growth of between 4%-5% year-over-year, driven by higher North America sales volumes and ongoing rises in ASPs.
For operating margin in 2024, on a consolidated basis, we are targeting an operating margin of 8%-9%, considering the positive effects of ongoing improvements in product mix and cost competitiveness enhancement, despite the deteriorating external business environment, including FX rate, interest rates, and concerns about global demand contraction. Our investment plan for the year is KRW 12.4 trillion, up 3.3% from a year earlier. We are allocating KRW 4.9 trillion for R&D, marking a 19.5% rise from the previous year, to support the increasing number of vehicles to be produced, including EVs, Genesis, and N brands, and secure future technologies for the SDV transition.
For CapEx, we plan to invest KRW 5.6 trillion, down 13.8% from 2023, and for strategic investments, we plan to invest KRW 1.9 trillion, or a 23.7% increase. Regarding cash free cash flow, our revised expectation is a range between KRW 2.5 trillion-KRW 4 trillion, down KRW 0.5 trillion from our previous guidance of KRW 3 trillion-KRW 4.5 trillion, reflecting continued shareholder returns and increase in investment. Regarding our shareholder return policy, we remain committed to the mid- to long-term approach announced on April 25, 2023, including dividend payout ratio of 25% or higher, quarterly dividends from Q2 2023, and canceling 1% treasury stocks every year for the next three years.
We'll continue to keep up with the policy to benefit our shareholders. In 2024, we'll strive to meet our 2024 annual guidance, building on improving profitability fundamentals and prioritizing continued profit creation and shareholder value. For more information, please refer to the 2024 guidance information available on our website. This is all for 2024 guidance presentation. Thank you. That is all, and we'll now begin the Q&A session.
Now, Q&A session will begin. Please press star one, that is star and one if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone. The first question will be provided by Kyoung-Je Hwang from Merrill Lynch. Please go ahead with your question.
Hello, I'm Kyoung-Je Hwang from Merrill Lynch. With regards to the business plan this year, when I take a look at North America's first half, instead of going eco-friendly, Santa Fe or just a facelift and GV80 and other new lineups are in queue. And I think there will be a lot of benefits if you utilize the incentives correctly. In, with regards to that, can you share the direction for us?
Thank you for the question. As you said, we are trying for Santa Fe, Santa Fe full model change, and to some facelift, facelift and introduction of GV80. And as you, but the incentive right now is down, downwards to the manageable level. We have injected a lot of incentives to respond to the IRA, so if you separate the ICE models with EV models, you can see that ICE models are below average, industry average. And as I said, if we, introduce Santa Fe and Tucson facelift for the ICE models, we'll be able to manage the incentives more easily and the average will go down a little bit more. Next question?
The following question will be presented by Eun-Young Lim from Samsung Securities. Please go ahead with your question.
두 번째는 이제 배당에 대한 가이던스를 지켜줘서 되게 긍정적으로 생각을 하는데, 이제 주가 반응이 약간 기아보다 약한 걸 보니까 아무래도 이제 자사주 매입 소각을 시장에서는 또 추가로 바라고 있는 것 같습니다. 근데 이제 워낙에 지금 투자가 많으신 상황인데, 이제 어떤 뭐 현금 유동성이라든지, 아니면 어떤 조건이 만족이 되면 현대차가 추가로 자사주 매입 및 소각을 검토를 하실 수 있는지, 그런 내부적인 이제 검토 사항이 있는지 말씀 부탁드립니다. 감사합니다.
Yes, good afternoon. I am Eun-Young Lim from Samsung Securities. I have two questions. The first part of my question is on the guidance. According to the audit result, audit report that has been released, I believe that from Q3 2023, the materials cost has been constantly coming down, which will, I believe, have a good impact on an annual basis. However, according to the guidance, the profitability guidance is similar to last year. So I was wondering about the reason why you are taking a conservative approach to the profitability guidance. Is it because of the finance business? And if so, then how do you believe the upside in that business would be with the falling interest rates? So what is your outlook on the finance business under HMG? And my second question is regarding the dividend.
I believe it is very positive that you are keeping your dividend policy that was announced last year. However, the impact on the stock price seems to be quite marginal compared to Kia. So I was thinking maybe the market is expecting the company to cancel additional treasury stock. So what do you think is necessary for the company to consider additional retirement of the treasury stock? Is it liquidity, or is there any other element that is required for you to consider additional cancellation of the treasury stock?
네, 말씀드리겠습니다. 그 가이던스 관련해서 그 감사보고서를 보시고, 상반기 대비해서 재료비율이 계속 떨어지는 추세에 있다. 그래서 앞으로도 좀 좋아질 것 같은데, 가이던스가 조금 보수적으로 나온 게 아니냐, 뭐 이런 취지의 질문을 해주셨는 것 같은데요. 지금 재료비가 떨어지는 요인은 저희가 이제 원가 절감을 위해서, 원가 절감 활동을 통해서 떨어뜨리는 부분도 있고, 그 상반기이나 연초에 올라갔던 배터리 같은, 그 배터리 셀 소재 가격이 많이 올라갔다가 그게 지금 떨어지는 추세에 있습니다, 원자재 가격이. 그래서 이제 그 가격이 변동성이 좀 있기 때문에 어떻게 움직일지도 모르고, 일단은 떨어지는 추세에 있는 건 맞습니다. 그래서 저희한테 긍정적인 영향을 미칠 거는 맞고요. 근데 저희가 이제 사업계 환율 자체가 KRW 1,270으로, 지금 전년도 대비해서는 굉장히 낮은 수준으로 저희가 사업계 환율을 예측을 했습니다.
그래서 전년 말하고 올 초, 전년 말에는 이 1,270원대가 적정한 수준이었고, 1,270원도 무너진다고 시장에서는 봤었는데, 실제로 지금 올초에 와서는 그 반대로 지금 1,320원대에서 지금 환율이 등락폭을 거듭하고 1,330원까지도 간 상황이기 때문에, 이런 부분이 저희한테는 또 지금 상황이라면 우호적으로 나올 것도 같습니다. 우호적 영향을 미칠 것 같아서, 이런 영향들이 계속 된다면, 될 수 있다면, 저희가 낸 가이던스는 충분히 달성을 하고, 조금 더 노력을 한다면 초과할 수도 있지 않을까, 저희는 그렇게 조심스럽게 예측을 해봅니다. 두 번째 질문은 이제는
Yes, on your question, I believe this is about the, first of all, the guidance, as suggested in the audit report. Yes, compared to the first half of last year, the materials costs have come down, come down in the second half and this year. So your question was about why we are taking the conservative guidance on profitability, even if the costs are falling. The costs are falling because, first of all, because of our efforts to reduce the cost, and second of all, the battery materials, the battery raw materials costs are coming down in the second half compared to the first half or early 2023. However, the battery raw material prices are quite volatile, so we do not really know where to go with the, price of battery raw materials.
However, what's clean, what's clear is that the cost is falling, yes. And also, we have another factor at play, which is, one dollar rate. It, in our business plan, we are projecting 1 to 71 to dollar, which is lower than last year's. However, the correct rate is, appreciating again to 1,320 this year, and it once even touched 1,330 Korean won. So this will definitely have a positive impact on our performance, and if this continues, we will be able to achieve the guidance, and we might even be able to overachieve it.
네, 그럼 금융 부분에 관해서는 그 현대캐피탈 측에서 답변드리겠습니다.
And for the-
네, 현대캐-
Second part of the question, Hyundai Capital will give you the answer.
예, 현대캐피탈 이형석 전무입니다. 2023년에 현대캐피탈과 현대캐피탈 아메리카의 손익이 전년 대비 좀 하락한 것은 그 이자, 금리의 급격한 인상에 따른 이자 비용 상승과 대손 비용이 이제 COVID 이전 수준으로 정상화하는 이 두 가지 이유 때문이었는데요. 이 두 가지 요...
... 측면 모두 2024년에는 완화될 것으로 예상하고 있어서, 2024년에 저희 영업이익은 현대캐피탈 HCA 모두 2023년 대비 소폭, 성장할 것으로 예상하고 있습니다. 다만 그 폭이 크지는 않아서 현대차의 영업이익률에 영향을 미칠 정도는 아니라는 판단입니다. 감사합니다.
Yes, I'm SVP, Hyung-Seok Lee of Hyundai Capital. Yes, as you said, in 2023, the profit and loss of Hyundai Capital and Hyundai Capital America were quite were not as expected because of the rising interest rate and resultant interest spendings as well as the cost of bad debt. Most of the elements were going backwards to pre-COVID levels. However, the situation will recover in 2024. Therefore, Hyundai Capital and Hyundai Capital America will resume its growth in 2024 compared to 2023. But not so much, but it will be recovered slightly. However, it will not be big enough to have an impact on the operating profit margin of HMC.
예, 그러면 두 번째 질문 주셨던 그 자사주를 매입하는 거는 어떤 회사의 어떤 기준이나 룰이 있어서, 그 기준이나 룰에 도달을 하게 되면 자사주를 매입할 계획이 있느냐? 이렇게 질문을 하셨는데요. 저희가 이제 배당에서도 말씀드렸고, 가이던스에서도 말씀드렸고, 어찌됐든 저희는 앞으로 그 4월에 말씀드린 것처럼, 25%의 배당 성향을 계속해서 유지를 할 것이고요. 그다음에 약속드렸던 자사주, 매년 1%씩 3년간 소각한다고 약속드렸습니다. 그거는 지속해서 할 예정입니다. 저희가 보유하고 있는 자사주가 4%가 좀 넘는데, 1% 자사주 매입하는 데 KRW 400 billion 정도가 들어갈 것으로 예상이 되는데, 그 뭐 그... 그러니까 3%를 다 소각을 하게 되면 저희 남는 자사주가 1% 정도가 되기 때문에, 뭐, 그 시점이 된다 그러면, 아니면 중간이라도 자사주 매입을 계속해서 검토를 해 나가도록 하겠습니다. 저희는 주주 환원 정책에 대해서 시장에 말씀드린 거는 원칙- 끝까지 지킬 예정이고, 주주한테 이익이 되는 방향으로 계속해서 검토를 해 나갈 예정입니다.
이상 답변드렸습니다.
Yes, on the second part of the question, regarding the cancellation of our treasury stock, your question was if there is any rule or standard for us to consider additional cancellation of the treasury stock. As announced in our guidance and our dividend policy, we will continue to keep over 25% dividend payout ratio and 1% cancellation of treasury stock over the next three years. We'll keep that promises. We currently have the dividend, excuse me, we have currently have the treasury stock holding of 4%, and 1% cancellation requires KRW 400 billion. So when we complete the cancellation of 3% of the treasury stock holdings that we have, we'll have 1% remaining.
So at that moment, or maybe before that, we'll consider your suggestion or any other way to bring back the benefits to our shareholders. So we are committed to keeping our promises regarding the shareholder return policy.
다음 질문 받겠습니다. Next question?
다음으로 질문해 주실 분은 J.P. Morgan 자산운용의 Theodore Hadewijch 자자 님입니다.
The following question will be presented by Theodore Hadewijch from J.P. Morgan Asset Management. Please go ahead with your question.
Yeah, thank you very much for the time. So I have two questions. So the first one is on the recent slowdown of EV adoption in the U.S. and also in Europe. So in general, how does this trend impact Hyundai? What is your plan in terms of adapting to this new trend? And also in terms of hybrid vehicles, what's your plan in terms of you know, growing this segment for 2024?
안녕하십니까? J.P. Morgan의 Theodore, Theodore입니다. 시간 내주셔서 감사하고요. 질문 두 가지 있습니다. 첫 번째 질문입니다. 최근 EV 판매량이 미국과 유럽에서 점점 더 줄어 들어가고 있는 걸로 나타나는데요. 이 부분이 현대에게 어떠한 영향을 끼치는지 조금 궁금하고요. 관련해서 대응 계획이 있으시다고 하면은, 그 부분 공유해 주셨으면 감사하겠습니다. 공유해 주시면 감사하겠습니다. 그리고 두 번째로는 하이브리드 차 관련해가지고, 계획이 있으시다고 알고 있는데, 해당 관련, 2024년 계획도 공유해 주시면 감사하겠습니다.
Yeah. Hi, good afternoon. This is Zayong Koo, Head of IR. I think your first and second question, we can kind of combine it into one. But generally speaking, as you, as you mentioned, the BEV market has definitely been slowing down. However, our, our overall outlook or, you know, direction that we have pointed out during the CEO, CEO Investor Day of achieving about 2 million unit sales by 2030 still holds.
...Of course, it's not gonna be a linear growth. We will definitely see a bit of a hiccup or going, you know, ups and downs, but nevertheless, we will continue with that. This year, our forecast for EV pure EVs, BEVs is about 300,000 units, which represents about a 12% growth over last year, what we achieved last year, of about 270,000 units.
As you mentioned, I mean, again, as we mentioned it during the CEO Investor Day, you know, one of our strengths, we believe, is our flexibility in what we call the Hyundai Motorway, enabled to produce, you know, shift from the ICE models to the eco-friendly BEV models, et cetera. And with the growing demand towards HEV, this year, actually, we're projecting about a 28% growth in the hybrids, reaching our target for this year is approximately 480,000 units. Last year, we achieved about 370,000 units, so that represents about 11% of our total sales, and last year was about 9%. And if you recall the numbers that we presented by 2030, hybrid has actually also been a very strong contributor.
By 2030, we estimate the hybrids will account for about 15%. The BEVs will account for about 34%. So those two collectively will represent about 50% of our sales in 2030.
As you mentioned, I mean, again, as we mentioned it during the CEO Investor Day, you know, one of our strength, we believe, is our flexibility in what we call the Hyundai Motorway, enabled to produce, you know, shift from the ICE models to the eco-friendly BEV models, et cetera. And with the growing demand towards HEV, this year, actually, we're projecting about a 28% growth in the hybrids, reaching our target for this year is approximately 480,000 units. Last year, we achieved about 370,000 units, so that's represents about 11% of our total sales, and last year was about 9%. And if you recall the numbers that we presented by 2030, hybrid has actually also been a very strong contributor.
By 2030, we estimate the hybrids will account for about 15%. The BEVs will account for about 34%. So those two collectively will represent about 50% of our sales in 2030.
Okay, let me, I'm still trying to find the other numbers, but, but for the net cash position ex finance right now, we're currently at about a little over KRW 16 trillion. So it's gone up from about fourteen and a half, fourteen point six trillion. So it's gone up a little bit, excluding the finance side. The other numbers, we... If it's okay, can we actually send it to you by email? Because I don't have those numbers on top of my head. If, if that's okay, we'll get back to you by email on the, on those numbers.
Thank you very much.
Okay, and in terms of the, the second question was what? Sorry, what?
... Hold on a second, we need some numbers again. Anyway, as I mentioned earlier, the total hybrid, you do this one for the domestic side, right?
That is correct.
Because, yeah, I mean, I mentioned that total hybrid accounted for about 9%. I think for domestic is a little bit higher. It's about 20% for this year, projection for hybrids. So 13, and even 2024, is... Sorry, about 20% is the penetration for 2024. Last year, 2023 was about 18%.
Net cash position in finance KRW 16.6. Hybrid market share.
The end of the Q4 2023 earnings call. Thank you for joining.
If you have any questions, please contact Hyundai Motor IR team. Thank you very much for your attention!