Hyundai Motor Q2 Operating Profit Down 15.8% as U.S. Tariff Impact Intensifies (Update)

Hyundai Motor Company announced on July 24 that its operating profit for the second quarter recorded KRW 3.6016 trillion, a decrease of 15.8% compared to the same period last year, due to the impact of tariffs in the United States. During the same period, revenue reached KRW 48.2867 trillion, a 7.3% increase year-on-year.

The operating profit margin stood at 7.5%, supported by favorable exchange rate effects, despite an increase in incentives and expanding investments.

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Hyundai Motor stated, "We achieved external growth thanks to increased sales in key markets such as Korea, the United States, and Europe." However, the company also explained, "Profitability weakened due to the full-scale impact of U.S. tariffs, as well as increases in global incentives and selling expenses resulting from intensified competition."

In the second quarter of 2025, Hyundai Motor sold 1,065,836 units in the global market, marking a 0.8% increase compared to the same period last year.

In the domestic market, sales of SUVs grew, driven by the new Palisade and IONIQ 9, resulting in 188,540 units sold, a 1.5% increase year-on-year.

Overseas, sales in the United States rose by 3.3% year-on-year to 262,305 units, but sales in emerging markets declined. Nevertheless, total overseas sales reached 877,296 units, a 0.7% increase from the same period last year.

Global sales of eco-friendly vehicles (including commercial vehicles) rose by 36.4% year-on-year to 262,126 units, driven by an increased proportion of electric vehicle (EV) sales in Europe and a strengthened hybrid lineup. Of these, EV sales totaled 78,802 units, and hybrid sales reached 168,703 units.

The cost of goods sold ratio increased by 2.7 percentage points year-on-year to 81.1%. Selling and administrative expenses as a percentage of revenue fell to 11.4% compared to the same period last year, as a slight increase in marketing and research costs was offset by a decrease in warranty expenses.

Ordinary profit and net profit were recorded at KRW 4.3853 trillion and KRW 3.2504 trillion, respectively.

Hyundai Motor expects that the impact of changes in the trade environment, including tariffs, will continue to pose risks to its business operations. The company also forecasts that the unpredictable business environment will persist in the second half of the year, as a slowdown in sales centered on emerging markets continues.

A Hyundai Motor official stated, "We plan to tentatively maintain the guidance announced at the beginning of the year and will actively implement systematic countermeasures by upgrading our strategies based on the direction of the U.S. government's tariff policy to be announced on August 1." The official added, "We aim to secure sustainable growth momentum through sophisticated analysis of complex internal and external management risks and bold innovation to fundamentally strengthen future competitiveness."

Meanwhile, in line with the Value-Up Program announced last year, Hyundai Motor decided to raise its second-quarter dividend per share to KRW 2,500, a 25% increase from KRW 2,000 in the same period last year.

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