to leave a comment.
Sales 45.9389 trillion won · Operating profit 2.5147 trillion won · Operating profit margin 5.5%
Tariff costs 860 billion won... Despite 2.5% decrease in sales, eco-friendly vehicles up 14.2%
Recouping profitability through new model launches and business plan re-evaluation... Quarterly dividend 2,500 won per share
Hyundai Motor recorded somewhat sluggish performance in the first quarter of this year due to U.S. tariffs, rising raw material prices, and increased sales warranty provisions.
Hyundai Motor announced on the 23rd that its consolidated operating profit for the first quarter of this year was tentatively tallied at 2.5147 trillion won, a 30.8% decrease compared to the same period last year.
Sales increased by 3.4% to 45.9389 trillion won, marking the highest Q1 sales ever.
Net profit decreased by 23.6% to 2.5849 trillion won. The operating profit margin was 5.5%.
Hyundai Motor's operating profit decreased by more than 1 trillion won compared to the same period last year due to U.S. auto tariffs, increased sales warranty provisions due to rising exchange rates, and a decrease in global demand due to the Iran war.
The average won/dollar exchange rate in the first quarter of this year was 1,465 won, an increase of 0.9% compared to the same period last year.
The cost of sales ratio increased by 2.7 percentage points to 82.5% compared to the same period last year due to rising raw material prices. U.S. 15% tariff costs totaled 860 billion won.
Hyundai Motor sold 976,219 units in the global market in the first quarter of this year. This is a 2.5% decrease compared to the same period last year.
In the domestic market, sales decreased by 4.4% to 159,066 units due to a waiting demand for new models.
Overseas sales decreased by 2.1% to 817,153 units due to market deterioration. However, in the key U.S. market, sales increased by 0.3% to 243,572 units.
Despite the decrease in overall sales, eco-friendly vehicles (including commercial vehicles) increased by 14.2% to 242,612 units, driven by the strengthening of the hybrid vehicle lineup.
The proportion of eco-friendly vehicle sales was also the highest at 24.9%. This means that one out of every four vehicles sold in the global market in the first quarter was an eco-friendly vehicle.
Among these, electric vehicles accounted for 58,788 units, and hybrid vehicles for 173,977 units.
Hybrid vehicle sales were the highest ever on a quarterly basis, pushing the proportion of hybrid vehicle sales to 17.8%, also a quarterly record high.
A Hyundai Motor official said, "Despite the decrease in global demand due to geopolitical issues and one-time factors deteriorating profitability, Hyundai Motor's global market share increased by 0.3 percentage points from 4.6% to 4.9%," adding, "In the U.S. market, the share rose by 0.4 percentage points from 5.6% to 6.0%."
Hyundai Motor predicted that an unpredictable business environment will continue due to expanding macroeconomic uncertainty, increasing geopolitical risks, and deepening trade conflicts between countries.
Accordingly, the company plans to secure new growth momentum, focusing on major new models to be launched this year.
It also plans to flexibly respond to market changes by combining the transition to electrification, expansion of high-value-added models, and region-specific customized strategies.
To compensate for factors deteriorating profitability, Hyundai Motor plans to re-examine all procedures related to expenditures, including business plan formulation, budget setting, and cost execution, from scratch.
Meanwhile, Hyundai Motor will implement a quarterly dividend of 2,500 won, the same as in the same period last year, in accordance with the value-up program announced last year.
A Hyundai Motor official said, "Despite changes in the macroscopic business environment, Hyundai Motor will continue to strive to faithfully implement the previously promised shareholder return policy to maximize shareholder value."
Newsletter
Get key news delivered to your email every morning
to leave a comment.