Hyundai Motor Group overtakes Volkswagen in profitability, claims global No. 2 spot

By Kim Dong-young Posted : March 11, 2026, 10:59 Updated : March 11, 2026, 10:59
Hyundai Motor Group demonstrates autonomous mobility robot platform MobED (Mobile Eccentric Droid) during the International Robot Exhibition 2025 in Tokyo, Dec. 3, 2025. UPI-Yonhap
 
SEOUL, March 11 (AJP) - Hyundai Motor Group surpassed Volkswagen Group in annual operating profit for the first time last year, securing the No. 2 position among global automakers in a milestone that underscores the South Korean conglomerate's rising dominance in an increasingly competitive industry.

The group, which encompasses Hyundai Motor Company, Kia and premium line Genesis, posted a combined operating profit of 20.55 trillion won ($13.99 billion) in 2025, comfortably eclipsing Volkswagen's 8.9 billion euros (15.19 trillion won). Toyota Group retained the top spot with an operating profit of 4.31 trillion yen (39.97 trillion won).

Hyundai Motor Group sold 7.27 million vehicles worldwide last year, ranking third in global sales behind Toyota at 11.32 million units and Volkswagen at 8.98 million units. General Motors trailed in fourth with 6.18 million units, followed by Stellantis at 5.48 million.

The group's operating profit margin stood at 6.8 percent, more than double Volkswagen's 2.8 percent, and second only to Toyota's 8.6 percent.

Despite shouldering about 7.2 trillion won in U.S. tariff-related costs — split between Hyundai Motor at 4.1 trillion won and Kia at 3.1 trillion won — the group's tariff burden was lighter than that of Toyota, which paid about 1.2 trillion yen. Hyundai Motor Group offset tariff headwinds through local production adjustments, market diversification and swift inventory drawdowns.

Industry analysts attributed the group's outperformance to its agility in balancing electrified and internal combustion lineups while tightening cost controls across its global operations.

Revenue for the group totaled 300.4 trillion won last year, dwarfed by Volkswagen's 321.9 billion euros but supported by margins that have steadily widened over the past several years.

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