Hyundai is delisting its London and Luxembourg GDRs

Hyundai Motor Co. will delist its GDRs (global depositary receipts) from the London and Luxembourg Stock Exchanges, starting on December 19, according to a recent announcement made by the South Korean car company, picked up by tipranks.com. The decision is part of a broader simplification effort in several jurisdictions, driven by low trading volumes and reduced demand for these securities. Investors were advised to contact their financial advisors regarding holdings in these GDRs.

Last week, Hyundai Motor reported third-quarter 2024 net profit below expectations amid weaker vehicle demand. Net profit fell 3 percent from the same period in 2023 to 3.206 trillion won ($2.32 billion). Analysts had expected a net profit of 3.424 trillion won.

The company's revenue rose 4.7 percent to 42.928 trillion won in the July-September period, while operating profit fell 6.5 percent to 3.581 trillion won, according to marketscreener.com.

The company said its wholesale car sales fell 3.2 percent globally as demand for vehicles weakened in most major markets. North America performed positively, however, with Hyundai's wholesale car sales in that market up 9.3% in the quarter under review.

Hyundai expects an unfavorable business environment with major markets slowing and geopolitical risks rising. However, the company aims to maintain solid sales growth and strengthen its position as a leader in electric vehicles, especially in the US.

Hyundai is maintaining its target of selling two million electric vehicles globally by 2030, while rivals have scaled back or scrapped those targets as consumer demand for battery-powered vehicles slows.

Hyundai and General Motors Co. (GM) of the US reached a non-binding agreement in September to discuss ways to jointly develop vehicles, including models with gasoline engines, as well as electric and hydrogen-powered cars. A partnership with GM could help Hyundai expand its presence in the US. Hyundai and its subsidiary Kia are building a new factory in Georgia, which is due to open by the end of 2024.

Hyundai is also targeting India after its unit Hyundai Motor India Ltd., the South Asian country's second-largest carmaker, listed on the local market last week.