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Sales 45.9389 trillion KRW · Operating profit 2.5147 trillion KRW · Operating profit margin 5.5%
Tariff costs 860 billion KRW... Eco-friendly car sales up 14.2% despite overall sales drop of 2.5%
Profitability recovery through new model launches and business plan reevaluation... Quarterly dividend of 2,500 KRW per share
Hyundai Motor recorded somewhat sluggish performance in the first quarter of this year due to factors such as US tariffs, rising raw material prices, and increased provisions for sales warranties.
Hyundai Motor announced on the 23rd that its consolidated operating profit for the first quarter of this year was provisionally tallied at 2.5147 trillion KRW, a 30.8% decrease compared to the same period last year.
Sales increased by 3.4% to 45.9389 trillion KRW. This is the highest ever for a first quarter.
Net profit for the period decreased by 23.6% to 2.5849 trillion KRW. The operating profit margin recorded 5.5%.
Hyundai Motor's operating profit decreased by more than 1 trillion KRW compared to the same period last year due to US automobile tariffs, increased provisions for sales warranties due to exchange rate appreciation, and reduced global demand caused by the Iran war.
The average KRW/USD exchange rate in the first quarter of this year was 1,465 KRW, a 0.9% increase compared to the same period last year.
The cost of sales ratio rose by 2.7 percentage points to 82.5% compared to the same period last year due to rising raw material prices. The 15% US tariff cost was tallied at a total of 860 billion KRW.
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 demand for new models.
Overseas sales decreased by 2.1% to 817,153 units due to market deterioration. However, in the key US market, sales increased by 0.3% to 243,572 units.
Despite the decrease in overall sales, eco-friendly vehicles (including commercial vehicles) recorded a 14.2% increase, selling 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 the highest ever on a quarterly basis.
A Hyundai Motor official said, "Despite the decrease in global demand due to geopolitical issues and one-off factors worsening profitability, Hyundai Motor's global market share rose by 0.3 percentage points from 4.6% to 4.9%. In the US market, the share increased by 0.4 percentage points from 5.6% to 6.0%."
Hyundai Motor predicted that an unpredictable business environment will continue due to increasing macroeconomic uncertainties, rising 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.
Additionally, it plans to flexibly respond to market changes by combining the transition to electrification, expansion of high-value-added vehicle models, and region-specific customized strategies.
To recover from factors worsening 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 KRW, the same as the previous year, in accordance with the value-up program announced last year.
A Hyundai Motor official stated, "Despite changes in the macroscopic business environment, Hyundai Motor will continue to strive for the faithful implementation of its previously promised shareholder return policy to maximize shareholder value."
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