Hyundai Motor, South Korea’s top automaker, reported a 23.6% year-on-year decline in net profit for the first quarter, amounting to 2.58 trillion won ($1.7 billion). Operating income also fell by 30.8% to 2.51 trillion won, despite a 3.4% increase in sales to 45.93 trillion won.
The company’s profits exceeded market expectations, with analysts estimating a net profit of 2.43 trillion won. Hyundai attributed the profit decline to factors such as U.S. auto tariffs, rising raw material costs, and increased investments, with tariff-related costs reaching 860 billion won during the quarter.
Despite a 2.5% decrease in global wholesale sales to 976,219 units, Hyundai noted stronger sales of high-value vehicles, particularly hybrids. Hybrid electric vehicle sales reached a record quarterly high of 173,977 units, contributing to a 24.9% share of eco-friendly vehicles in total sales.
Hyundai Motor expressed expectations of a challenging business environment ahead, citing macroeconomic uncertainties, geopolitical risks, and escalating trade tensions. The company plans to drive growth through new model launches, expansion of high-value vehicle offerings, and accelerated electrification efforts, alongside region-specific strategies and cost management enhancements.
