Hyundai sees rebound of vehicle production in H1

South Korea’s Hyundai Motor Co forecast on Tuesday its vehicle production would rebound in the first half of this year as a global chip shortage is expected to ease gradually from the Q2. The normalisation of auto chip supply and demand is expected in the third quarter, when the capacity of semiconductor companies is expected to rise, Executive VP Seo Gang Hyun said on Hyundai’s conference call.

The shortage will continue in the first quarter due to the spread of the Omicron variant, Seo said, adding it was the prolonged COVID-19 pandemic in Southeast Asia and resulting chip sourcing troubles that pushed Hyundai’s sales to less than the targeted 4 million vehicles in 2021.