Hyundai, Kia expect 10% increase in car sales by 2023

Analysts say the sales target looks tough, but is achievable given the demand for connected vehicles due to expanding supply chains.

SEOUL - Hyundai Motor and affiliate Kia forecast that their combined global auto sales would rise by about 10 percent through 2023, even though last year's sales were deliberately slowed due to supply chain disruptions.

The companies have sold 6.85 million vehicles by 2022, about 4 percent short of their assembly target of 7.16 million vehicles, mainly because of problems including chip and component shortages.

The companies said it would target selling 7.52 million vehicles worldwide this year.

Analysts said the sales targets for both the companies this year look aggressive, but could be achieved given the demand for connected vehicles.

"Hyundai Motor and Kia are seeing even more recall orders, and car buyers are lining up to buy cars despite the recent economic climate... with that demand."In the picture, companies have "confidence," said Kim Gwi-yeon, an analyst with South Securities.

However, Kim said economic challenges such as higher interest rates could drag down auto sales, especially after demand slumped in the second half of the year.