Hyundai Motor said in a regulatory filing on the 23rd that its first-quarter operating profit on a consolidated basis was provisionally tallied at 2.5147 trillion won, down 30.8% from a year earlier.
Revenue rose 3.4% to 45.9389 trillion won, the highest ever for a first quarter. Net profit fell 23.6% to 2.5849 trillion won. Operating margin was 5.5%.
The company said operating profit fell by more than 1 trillion won from the same period last year due to U.S. auto tariffs, higher warranty provisions tied to a weaker exchange rate, and softer global demand linked to the Iran war, among other factors.
“Amid a global industrial environment with growing uncertainty, difficult market conditions are continuing, including a 7.2% year-on-year decline in demand for the global auto industry,” a Hyundai Motor official said. “However, Hyundai Motor is maintaining a steady sales trend compared with the decline in overall demand by expanding sales of high value-added models such as hybrids.”
Hyundai Motor sold 976,219 vehicles worldwide in the January-March 2026 period, down 2.5% from a year earlier.
Domestic sales fell 4.4% to 159,066 vehicles, which the company attributed to demand tied to waiting lists for new models. Hyundai Motor said it plans to roll out a large number of new vehicles this year, starting with a facelifted Grandeur.
Overseas sales slipped 2.1% to 817,153 vehicles, despite a 0.3% rise in the key U.S. market to 243,572, as overall market conditions deteriorated.
Global sales of eco-friendly vehicles, including commercial models, rose 14.2% to 242,612 units in the first quarter, driven by higher EV sales and a strengthened hybrid lineup. EV sales totaled 58,788 units and hybrid sales 173,977.
Hyundai Motor said it expects an increasingly hard-to-forecast business environment to persist due to greater macroeconomic uncertainty, rising geopolitical risks and deepening trade conflicts between countries.
To navigate those conditions, the company said it will seek new growth momentum centered on major new models launching this year. It plans to pursue both higher sales and improved profitability through key new-model lineups and upgraded versions that bolster brand competitiveness, while also advancing electrification, expanding high value-added models and pursuing region-specific strategies.
Under the value-up program announced last year, Hyundai Motor said it will pay a quarterly dividend of 2,500 won, the same as the dividend paid in the year-earlier quarter. “Despite changes in the macro business environment, Hyundai Motor will continue striving to faithfully implement the shareholder return policy it has promised in order to maximize shareholder value,” the official said.
* This article has been translated by AI.
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