Hyundai Motor's Q3 Operating Profit Drops 29% as U.S. Tariff Impact Intensifies (Update)

Record-High Third-Quarter Revenue Achieved
Profitability Unavoidably Hit by Tariff Impact

Hyundai Motor Company’s operating profit for the third quarter of this year fell by 29% compared to the previous year. Although global sales, particularly in the North American market, expanded and revenue increased by more than 8% year-on-year, profitability inevitably declined due to the burden of U.S. tariffs and increased incentives.

On October 30, Hyundai Motor Company announced that it achieved sales of 46.7214 trillion won and operating profit of 2.5373 trillion won for the third quarter of 2025. This represents an 8% increase in sales compared to the same period last year, but a 29% decrease in operating profit. The operating margin was recorded at 5.4%.

Hyundai Motor Company achieved its highest-ever third-quarter sales, driven by strong sales in key markets such as the United States and Europe, favorable foreign exchange rates, and improved performance in its financial segment. However, operating profit declined significantly year-on-year due to the full impact of U.S. tariffs and increased incentives resulting from intensified global competition.

Hyundai Palisade. Provided by Hyundai Motor Company

In the third quarter of this year, Hyundai Motor Company sold 1,038,353 units in the global market, a 2.6% increase compared to the same period last year.

In the domestic market, sales of sport utility vehicles (SUVs) grew by 6.3% year-on-year to 180,558 units, thanks to the launch effects of the Palisade Hybrid (HEV) and Ioniq 9. Overseas sales reached 857,795 units, up 1.9% from the previous year. While sales in emerging markets declined due to worsening external conditions, sales in the United States increased by 2.4% year-on-year to 257,446 units.

This quarter, global sales of eco-friendly vehicles (including commercial vehicles) totaled 252,343 units, up 25.0% from the same period last year, driven by an increased proportion of electric vehicle (EV) sales in Europe and strengthened HEV lineup. Of these, 76,153 units were EVs and 161,251 units were HEVs.

Hyundai Motor Company predicted that changes in trade conditions, such as tariffs, would continue to be a major risk factor affecting future business performance. The company also forecasted that a challenging business environment would persist, including ongoing sluggish sales in emerging markets.

Nevertheless, Hyundai Motor Company emphasized its commitment to achieving its '2025 annual guidance' through proactive and aggressive contingency plans, even amid ongoing uncertainty. At its CEO Investor Day in September, Hyundai Motor Company announced revised guidance targets, including a consolidated sales growth rate of 5.0-6.0% and a consolidated operating profit margin of 6.0-7.0% compared to the previous year.

Finally, based on the value-up program announced last year, Hyundai Motor Company set its third-quarter 2025 common stock dividend at 2,500 won, a 25% increase from the same period last year (2,000 won). A Hyundai Motor Company representative stated, "Despite macroeconomic changes, Hyundai Motor Company will strive to faithfully implement its shareholder return policy, which promises a minimum total shareholder return (TSR) of 35%, in order to maximize shareholder value."

This content was produced with the assistance of AI translation services.