Hyundai Mobis, South Korea’s top auto parts manufacturer, reported a 14% decline in net profit for the first quarter compared to the previous year. The company’s net profit for the quarter ending in March decreased to 883.05 billion won ($596 million) from 1.03 trillion won. This drop was attributed to subdued global vehicle demand impacting earnings.
Despite the profit decline, Hyundai Mobis saw a 3.3% increase in operating profit, reaching 802.65 billion won, and a 5.5% rise in sales to 15.56 trillion won during the same period. The company credited this growth to the enhanced supply of high-end electric components to international car manufacturers.
Hyundai Mobis plans to invest 2.1 trillion won in research and development this year to bolster its competitiveness in upcoming mobility solutions, marking a 12% surge from the previous year. The company, which derives around 90% of its parts sales from Hyundai Motor Co. and Kia Corp., aims to elevate the overseas parts sales share from 10% to 40% by 2033. Additionally, it holds a 21.86% stake in Hyundai Motor.
Hyundai Motor, on the other hand, disclosed a 23.6% year-on-year decrease in net profit for the first quarter, amounting to 2.58 trillion won. Despite this decline, the company’s sales rose by 3.4% to 45.93 trillion won during the same period. The company cited challenges such as U.S. auto tariffs, escalating raw material expenses, and increased investments as factors contributing to the profit reduction.
