Auto stocks are shaking all at once in global markets such as Toyota and Hyundai Motors. Semiconductor supply and demand conditions are expected to deteriorate in the second half, and as the corona delta mutant virus spreads mainly in Southeast Asia, parts procurement is also being disrupted. The stock market is predicting that a slump in auto stocks will be inevitable for the time being. Hyundai Motor, which has been declining day by day, has been overtaken by Kakao Bank in its market capitalization.
Toyota cut production
On the 20th, Hyundai Motor closed at 201,500 won, down 2.42 percent from the previous day. It’s not just Hyundai. Toyota Motor, Japan’s No. 1 market cap, also closed at 8915 yen, down 4.09% on the same day. Toyota also plummeted the day before and fell 8.33% in two days. Last night, Volkswagen fell 1.86% in the European market and Ford fell 2.54% in the US market. Shares of global auto stocks are showing signs of weakness all at once.
It started with Toyota’s announcement of production cuts. Toyota announced on the 19th that it would cut global production by 40% in September. Originally planned to produce about 900,000 units, it was reduced to 500,000 units. This is because the aftermath of the shortage of semiconductors continues and the spread of delta mutations in Southeast Asia has made it difficult to procure parts because factories have stopped.
Toyota’s announcement was also bad news for other automakers. This is because Toyota has been selling cars stably with excellent supply chain management despite the shortage of semiconductors this year. Toyota sold 5,467,000 units in the first half of this year. Volkswagen, in second place, sold only 4,978,000 units. It was much higher than General Motors (GM, 3494,000 units) and Hyundai Motor Group (3475,000 units). Global auto stocks sank when news broke that even Toyota was suffering from a shortage of semiconductors and parts. IHS Markit, a market research firm, predicted on the 19th (local time) that global automobile production could decrease by up to 7.1 million units due to a semiconductor shortage, and that conditions would improve only in the second half of next year.
Motliful, an American investment media outlet, said, “To date, Toyota has avoided production cuts due to a shortage of semiconductors, so this announcement has a great impact on the global automobile industry. It could have a greater impact,” he said.
Hyundai 車 overtaken by Cabin
Demand for new cars is also waning. The Mannheim Used Car Index, which reflects demand for new cars, has continued to rise since the beginning of the year, rising to 203 points at the end of May. However, it fell to 200.4 points in June and continued the downward trend in July (195.2) and mid-August (193.7). This means that consumers who rushed to purchase used cars do not want cars as they did before when new car shipments were delayed due to excessive demand for new cars. It can be seen that the demand that exploded after Corona 19 has calmed down.
Demand for new cars is waning, but semiconductor shortages continue. Securities analysts are also skeptical of Hyundai Motor Company. Hyundai Motor shares have been falling since the beginning of the year. After hitting an intraday high in January due to the Apple Car issue, it has fallen 30.28% so far.
In the end, on that day, Hyundai Motor surpassed Kakao Bank in market capitalization less than two weeks after it went public. Hyundai Motor Company’s market capitalization stood at 43.54 trillion won, falling behind Kakao Bank with 43.23 trillion won.
Experts advised to wait and see car owners for the time being. The explanation is that it is not the time to easily buy at the low point just because it has plummeted. Hwang Kyung-jae, head of research center at CGS-CIMB Securities, said, “As of the semi-annual report, Hyundai Motor Company’s material cost per unit rose to about 18.9 million won, reaching an all-time high, while the growth rate of domestic demand and sales in developed countries began to slow. The stock price is expected to be sluggish for the next 6-7 weeks as automakers check demand risk.”
There are also problems that Hyundai has to solve in the long term. It is a response to strengthening environmental regulations. Hwang, head of the center, said, “As environmental regulations are tightened, the real demand for internal-combustion engine cars is also a challenge that Hyundai will have to solve for the next two to three years. analyzed.
Reporter Seulgi Lee [email protected]