Seoul: Hyundai Motor Co. and Kia Corp., leading South Korean automakers, are poised to reveal their annual earnings for 2024 next week, amid anticipation of extending their streak of record-breaking performances. Industry analysts are keenly observing whether the companies can sustain their growth trajectory.

According to Yonhap News Agency, an analysis of securities industry forecasts over the past three months indicates that Hyundai Motor is projected to report sales of 173.1 trillion won (US$118.9 billion) with an operating profit of 14.8 trillion won. This represents a 6.4 percent increase in sales, though the operating profit is expected to decline by 1.9 percent. Concurrently, Kia is estimated to achieve sales of 106.8 trillion won and an operating profit of 12.8 trillion won, marking a year-on-year growth of 7.1 percent and 10.2 percent, respectively.

If these predictions materialize, Kia will achieve a historic milestone by surpassing 100 trillion won in sales for the first time. The combined sales of Hyundai and Kia are expected to reach 279.96 trillion won with an operating profit of 27.64 trillion won, breaking their previous records of 262.47 trillion won in sales and 26.73 trillion won in operating profit set in 2023.

Several factors, such as currency fluctuations and quality-related costs, could influence the final outcomes. The depreciation of the South Korean won against the U.S. dollar at the end of the previous year favorably impacted sales and operating profits but led to increased provisions for sales warranties. These provisions, which reduce profit and increase expenses when warranty claims are made, amounted to nearly 1 trillion won in the third quarter for both companies.

Jang Moon-su, an analyst at Hyundai Motor Securities, highlighted that while increased sales warranty provisions have impacted performance, Hyundai and Kia's robust partnerships and competitive edge in the evolving market offer optimism for better outcomes in 2025.