Hyundai Faces Profit Pressure Amid US Auto Tariff Climate

Hyundai Motor Company today announced its business results for the second quarter of 2025. The company reported a decline in second-quarter operating profit on Thursday, as U.S. tariffs on vehicles and parts began to affect its bottom line. The company also warned of further impact in the current quarter.

The South Korean automaker’s results highlight the stakes for government officials to negotiate a trade agreement after Washington and Tokyo reached a deal that will lower tariffs for Japanese competitors.

The company’s second-quarter revenue rose 7.3 percent year on year to KRW 48.29 trillion, marking its highest-ever quarterly revenue.

Operating profit stood at KRW 3.6 trillion for the April–June period, down 15.8 percent from a year earlier, with an operating profit margin of 7.5 percent. Higher incentives amid intensifying industry competition, as well as the impact of the global trade environment, weighed on the operating profit. Net profit, including non-controlling interests, decreased 22.1 percent to KRW 3.25 trillion.

Hyundai Motor sold 1,065,836 units globally during the April–June period, a 0.8 percent increase compared with the same period last year.

The company reported that sales outside of Korea increased by 0.7 percent to 877,296 units, driven by robust demand in North America, which recorded a 3.3 percent rise year on year.

Hyundai pointed to strong sales of the company’s key models, including the Tuscon and Santa Fe SUVs as well as the Elantra sedan (also known by the brand name Avante in certain markets) contributed to this growth.

Sales in Korea increased by 1.5 percent to 188,540 units compared with the second quarter of 2024, supported by new model launches, including the PALISADE SUV and IONIQ 9 SUV.

Global sales of electrified models in the second quarter jumped 36.4 percent year on year to 262,126 units. The company’s hybrid models led the growth, achieving record-high sales of 168,703 units – a 38.5 percent surge from a year earlier. The rise in EV sales, particularly in the European market, also contributed to the increase.

“Despite uncertainties in the global trade environment and conditions in emerging markets, Hyundai Motor is committed to sustaining its growth momentum in the second half of this year, reacting flexibly to market conditions and strengthening its long-term competitiveness,” the company said in a release.

Hyundai Motor 2025 Q2 Business Results

* Net Profit includes non-controlling interest * Under K-IFRS.  (Revenue / Operating Profit / Net Profit unit: Billion KRW) Source: Hyundai Motor