 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Hyundai Motor reported a 30.8% year-on-year decline in first-quarter operating profit to KRW 2.51 trillion, citing the impact of U.S. auto tariffs and geopolitical tensions in the Middle East.
Revenue rose 3.4% to a record KRW 45.9 trillion for the first quarter, while operating margin stood at 5.5%.
The company estimated that U.S. tariffs imposed under the Donald Trump administration resulted in an additional cost burden of approximately KRW 860 billion during the quarter. Sales disruptions—partly due to halted Palisade production amid safety concerns and regional instability—also reduced operating profit by about KRW 247 billion. Rising raw material costs, including steel, nickel, and lithium, added roughly KRW 200 billion in pressure.
Despite softer global demand, Hyundai Motor boosted revenue by expanding sales of higher-margin models, particularly hybrids. Total global sales fell 2.5% to 976,219 units, but eco-friendly vehicle sales rose 14.2% to 242,612 units. Hybrid sales jumped 27% to a record 173,977 units for the quarter.
The company plans to enhance profitability through new model launches, electrification, and region-specific strategies, while strengthening contingency measures to mitigate tariff risks.
Separately, Hyundai said it aims to establish a robot production system with annual capacity of 30,000 units by 2028, with testing and validation set to begin next year.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
