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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%
Recovering profitability with new car launches and business plan review... Quarterly dividend 2,500 won per share
Hyundai Motor recorded somewhat sluggish performance in the first quarter of this year due to 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 estimated at 2.5147 trillion won, a 30.8% decrease from 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 US auto tariffs, increased provisions for sales warranties due to rising exchange rates, and decreased global demand due to the Iran war.
The average won/dollar exchange rate in the first quarter of this year was 1,465 won, a 0.9% increase from the same period last year.
The cost of sales ratio recorded 82.5%, a 2.7 percentage point increase from the same period last year due to rising raw material prices. US 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, 159,066 units were sold, a 4.4% decrease due to waiting demand for new cars.
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 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 Q1 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 record high on a quarterly basis.
A Hyundai Motor official said, "Despite global demand decrease due to geopolitical issues and one-off factors worsening profitability, Hyundai Motor's global market share increased by 0.3 percentage points from 4.6% to 4.9%. In the US market, the share rose by 0.4 percentage points from 5.6% to 6.0%."
Hyundai Motor expects the difficult management environment to continue due to increasing macroeconomic uncertainty, rising geopolitical risks, and intensifying trade conflicts between countries.
Accordingly, the company plans to secure new growth momentum, focusing on major new cars to be launched this year.
In addition, it plans to flexibly respond to market changes by combining electrification transition, expansion of high value-added vehicle types, and customized strategies by region.
To offset factors worsening profitability, Hyundai Motor plans to review all procedures for 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 the previous year, in accordance with the value-up program announced last year.
A Hyundai Motor official said, "Despite changes in the macroeconomic management environment, Hyundai Motor will continue to strive to faithfully implement its promised shareholder return policy to maximize shareholder value."
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