S. Korea's Hyundai Profit Crashes 30 Percent in Q1

(MENAFN) Hyundai Motor, South Korea's largest automaker, reported a steep double-digit collapse in first-quarter operating profit Thursday, as U.S. tariff pressures overwhelmed gains from robust hybrid vehicle demand.

The Seoul-based carmaker posted an operating profit of 2.51 trillion won ($1.7 billion) for the January-March period, a punishing 30.8% drop compared to the same quarter a year earlier. Net income took an equally sharp hit, tumbling 23.6% to 2.58 trillion won.

Revenue offered a rare bright spot, climbing 3.4% to 45.94 trillion won — the highest first-quarter revenue figure in the company's history. Hyundai recorded an operating profit margin of 5.5% for the period.

The company was unambiguous in attributing the profit slump to Washington's tariff regime. Despite strong hybrid model sales, the profit plunged in double figures owing to the impact of the U.S. tariffs, Hyundai stressed.

Global vehicle sales also softened, with Hyundai moving 976,219 units worldwide in the first quarter — a 2.5% year-on-year decline the company linked to geopolitical uncertainties weighing on global demand. Domestic sales in South Korea fell 4.4% to 159,066 units, while international sales outside the country dipped 2.1% to 817,153 units.

Electrified vehicles emerged as the standout performer amid the broader sales decline. Hyundai's combined sales of hybrids, plug-in hybrids, battery electric vehicles, and fuel cell electric vehicles surged 14.2% year-on-year to 242,612 units — representing nearly a quarter, 24.9%, of the automaker's total global sales volume for the quarter.

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