Hyundai Glovis, a logistics subsidiary of Hyundai Motor Group, announced that it would increase its annual sales to 40 trillion won (37.2 billion U.S. dollars) by 2025. The company also announced a plan to broaden business areas to include future automobiles, and mobility business going beyond logistics.
Hyundai Glovis announced a mid- to long-term vision on Friday that calls for a proactive push into the mobility business including car sharing in the new future business category. The company is set to expand its conventional three flagship areas of logistics, shipping and distribution (used car sales business) to include five major business units including general logistics business, shipping business, module business, vehicle after-sales service and new future business. It will take over the module and after sales service business from Hyundai Mobis through spinoff and merger next month.
Hyundai Glovis posted 16.36 trillion won (15.2 billion dollars) in combined sales last year, an all-time high since its founding. The company aims to increase the annual sales to over 40 trillion won (37.2 billion U.S. dollars) in 2025 by achieving an annual average sales growth of 12 percent going forward.
By business category, it targets 23.6 billion won (22 million dollars) in the logistics, distribution and shipping businesses and 16.4 trillion won (15.3 billion dollars) in module and after-sales service. In addition, the company anticipates “extra sales” in the new business area including mobility service.
Notably, attention is focusing on vehicle sharing business and IT platform business, which the company singled out as core segments of its new business. According Hyundai Glovis, the domestic car sharing market will more than double from 225 billion won (210 million dollars) last year to over 500 billion won (466 million dollars) in 2020. “We will spearhead the domestic car sharing market by linking our capabilities in brand new vehicle shipment and delivery, parts and components for after-sales service, with artificial intelligence (AI) and IoT,” the company said.
Meanwhile, Hyundai Motor announced on the day that it will cancel a total of 8.54 million treasury shares including 6.61 million shares of common stock, and 1.93 million shares of preferred stock to help shore up its shareholder value. The volume constitutes 3 percent of Hyundai Motor’s total issued stock and is worth 960 billion won (895 million dollars). The automaker cancelled 11 million shares in 2001, and 1.32 million in 2005. Analysts say the company, which posted weak performance in first quarter earnings reported on Thursday, decided to cancel stock to raise its share price.
Eun-Taek Lee email@example.com