Hyundai Motor Records All-Time High Q2 Revenue of 49.2 Trillion Won, Operating Profit Down 20.8% (Update)

Sales Decline Due to Parts Supplier Fire and Deteriorating Market Conditions
Strong Performance of Hybrid Models Continues

Hyundai Motor announced on July 23 that its operating profit for the second quarter reached 2.851 trillion won, a decrease of 20.8% compared to the same period last year. Revenue posted 49.2153 trillion won, a 1.9% increase from a year earlier, surpassing the previous quarterly record of 48.2867 trillion won set in the second quarter of 2025.

The company continued its upward momentum in revenue, driven by robust sales of high value-added models, including hybrids, and favorable foreign exchange rates. The cost of goods sold ratio rose by 1.1 percentage points year-on-year to 82.2% due to higher raw material prices. Although warranty and marketing expenses increased slightly, the ratio of selling and administrative expenses to revenue remained similar to last year's 11.9%.

The operating profit margin for the second quarter stood at 5.8%. Hyundai Motor explained that, despite proactive implementation of contingency plans, the results reflect higher raw material prices as well as production disruptions caused by a fire at a parts supplier.

In January, Hyundai Motor set its annual guidance with a target for consolidated revenue growth of 1.0 to 2.0% and a consolidated operating profit margin of 6.3 to 7.3% year-on-year. The company also set an annual wholesale sales target of 4,158,300 units.

A Hyundai Motor official stated, "Unprecedented difficulties are being experienced as global demand for automobiles fell by 3.8% year-on-year due to geopolitical issues and intensifying competition. We will strive to achieve our annual guidance, announced at the beginning of the year, through the full-scale launch of new models and company-wide efforts, demonstrating Hyundai Motor's fundamentals in the global market."

For the second quarter, Hyundai Motor recorded 991,885 wholesale sales in global markets, marking a 6.9% decline compared to the same period last year.

In the domestic market, sales fell 16.4% year-on-year to 157,647 units due to supply disruptions stemming from a fire at a parts supplier. Starting with the recent launch of "The New Grandeur," the company plans to aggressively expand domestic sales by releasing a slew of new models with high product competitiveness within the year.

Overseas, Hyundai Motor sold 834,238 units during the same period, down 4.9% amid worsening business conditions in the global automotive industry, including reduced market demand. However, in the United States, the company sold 264,587 units, up 0.9% versus last year, maintaining a local market share in the 6% range for five consecutive quarters.

Sales of electrified vehicles, including commercial vehicles, reached 266,627 units in the second quarter, up 1.7% from a year earlier, bolstered by higher demand for hybrid models. Of these, electric vehicles accounted for 69,366 units, while hybrid vehicles recorded 187,661 units.

Hybrid sales achieved an all-time quarterly high. The share of electrified vehicles and hybrids within Hyundai Motor’s overall global sales also reached record levels at 26.9% and 18.9%, respectively.

Hyundai Motor forecast that challenging business conditions would persist due to ongoing macroeconomic uncertainties and intensifying competition among automakers. The company announced plans to secure new growth momentum, centered on major new model launches. In addition to sales of the hybrid model of The New Grandeur, Hyundai Motor intends to maintain flexible responses to market changes by continuously releasing core new models such as the Avante and other high-volume vehicles.

Additionally, to offset factors weighing on profitability such as production delays and tariff impacts, Hyundai Motor plans to mobilize company-wide efforts to increase production in the second half and continue executing contingency plans. A Hyundai Motor official explained, "While we faced a negative business environment in the second quarter due to geopolitical uncertainties and temporary parts supply disruptions, we will respond more flexibly to market demand in the future through diverse powertrain operations and a regionally tailored portfolio."

Meanwhile, Hyundai Motor will pay a quarterly dividend of 2,500 won per share, unchanged from the previous year, in line with its Value-Up Program announced in 2024.

This content was produced with the assistance of AI translation services.