Hyundai Motor, Kia Could Outperform Weak Auto Industry

Dow Jones
Yesterday

0425 GMT - South Korea's Hyundai Motor and its sibling automaker Kia could outperform the weak global auto industry for the rest of the year, Nomura's Angela Hong says. The analyst expects Hyundai Motor, which recently reached a wage deal with its union to end labor unrest, to see sales improve and its outperformance, particularly in the U.S., continue as it rolls out full model changes for the Tucson, GV80 and GV90 vehicles. She expects Kia's strong overseas sales, which have offset domestic declines, to continue through 2H, given robust demand for recreational vehicles, hybrid cars and electric vehicles. Nomura expects Hyundai and Kia shares to remain range-bound in the near term amid weak global sentiment toward the auto industry.

 

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