Hyundai Motor Achieves Record Q1 Revenue of KRW 46 Trillion, Operating Profit Down 30% Due to Tariffs (Update)

Record-High Hybrid Sales Reach 170,000 Units
Contingency Planning Minimizes Tariff Risks

Hyundai Motor Company announced on April 23 that its operating profit for the first quarter was 2.5147 trillion won, a decrease of 30.8% compared to the same period last year. This decline is attributed to deteriorating profitability caused by tariffs in its key market, the United States.

Revenue reached a record high of 45.9389 trillion won. Robust sales were driven by a significant increase in the sales of high value-added models, such as hybrid vehicles.

Yonhap News Agency

Ordinary profit amounted to 3.5215 trillion won, while net profit for the period was 2.5849 trillion won. Despite increased incentives and ongoing investment expansion, the operating margin was 5.5%, supported by strengthened contingency plans and favorable exchange rates.

Wholesale sales in the first quarter totaled 976,219 units, down 2.5% from the same period last year. In Korea, 159,066 units were sold, a 4.4% decrease year-on-year, due to new car waiting demand. Starting with the facelifted Grandeur, Hyundai Motor plans to launch a large number of new, highly competitive models this year.

Overseas sales in the United States, which is a key market, increased by 0.3% year-on-year to 243,572 units. However, due to deteriorating overall market conditions, total overseas sales declined by 2.1% year-on-year to 817,153 units.

Global sales of eco-friendly vehicles (including commercial vehicles) reached 242,612 units, up 14.2% year-on-year, consisting of 58,788 electric vehicles (EVs) and 173,977 hybrid vehicles (HEVs). In particular, HEV sales achieved a record high for a single quarter. The share of eco-friendly vehicles and HEVs in total global sales also reached record quarterly highs at 24.9% and 17.8%, respectively.

The cost of goods sold ratio rose by 2.7 percentage points year-on-year to 82.5% due to higher raw material prices. Selling and administrative expenses saw a slight increase, mainly from higher sales warranty costs and labor expenses. The ratio of selling and administrative expenses to revenue was 12.0%, the same as in the previous year. The impact of tariffs amounted to 860 billion won.

Hyundai Motor stated, "Difficult market conditions persist, with global automotive industry demand down 7.2% year-on-year, as uncertainty in the global industrial environment continues to rise. Nevertheless, we are maintaining solid sales momentum compared to the overall decline in industry demand, mainly through increased sales of high value-added models such as HEVs."

The company added, "Despite the global decline in demand and temporary factors negatively affecting profitability, Hyundai Motor's global market share increased by approximately 0.3 percentage points from 4.6% to 4.9%, while its U.S. market share rose by 0.4 percentage points from 5.6% to 6.0%. Global HEV sales hit a record high both in volume and share for a single quarter. We are responding flexibly to market demand through a comprehensive powertrain strategy that encompasses all eco-friendly vehicles."

Hyundai Motor anticipates that the business environment will remain unpredictable, due to expanding macroeconomic uncertainty, increasing geopolitical risks, and intensifying trade conflicts between countries. The company stated that it plans to secure new growth momentum centered on major new models to be launched this year.

The company aims to simultaneously expand sales and improve profitability by introducing a core lineup of new models and enhanced versions to strengthen its brand competitiveness. Hyundai Motor also plans to pursue electrification, expand high value-added models, and implement region-specific strategies to respond flexibly to market changes.

Additionally, the company will actively strengthen its contingency plans and focus company-wide capabilities on securing future competitiveness and profitability. Hyundai Motor will re-examine all processes related to spending, including business planning, budgeting, and cost execution, from the ground up, free from conventional practices.

Meanwhile, Hyundai Motor will pay a quarterly dividend of 2,500 won per share, the same as the previous year's first quarter, in accordance with the Value Up Program announced last year. A Hyundai Motor official stated, "Despite macroeconomic changes in the management environment, we will continue our efforts to faithfully implement the promised shareholder return policy to maximize shareholder value."

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