Hyundai Signs USD 796 Million Icebreaker Contract With Global Automaker

Hyundai Glovis Co., the logistics unit of South Korea’s Hyundai Motor Group, said on Friday it has clinched a $796 million deal to ship vehicles for a global automaker. On April 4th, Hyundai Glovis signed a contract with an unnamed car manufacturer to deliver vehicles in Europe. The Korean company will get these new cars in the next two years and then sell them for the next 2 years.

The company declined to provide additional details, citing confidentiality agreements

With an estimated annual sales of $1.2 billion, Hyundai Glovis makes 4.8% of its sales revenue through the contract. Kia Motors Corporation recently closed a deal worth 2.2 trillion won (approximately $1.8 billion) to ship its cars from another non-Korean carmaker. Hyundai has announced a three-year delivery contract with an unidentified carmaker. It will ship cars to Europe, the United States, and Asia during that time.

The company has been increasing its sales by reaching out to non-Hyundai Group affiliated customers. In the past, Hyundai Glovis received most of its orders from the affiliates Hyundai Motor Co. and Kia Corp.

When Hyundai entered the market for electric vehicles, it did so as a latecomer to the game. Despite being a large company, Hyundai Motor Group only accounted for 12% of orders in 2010. However, this percentage increased to 61% by 2021.

Hyundai Glovis, which operates 83 car-shipping vessels in September, plans to expand its fleet to as many as 90 ships by the end of 2023.

As global carmakers crank out more cars, seaborn will have a great time. On the back of a growing automotive chip shortage, global carmakers are going to give some orders to the smart new auto manufacturer.