According to the industry on Tuesday, Hyundai Motor Group (Hyundai Motor, Kia and Genesis) sold 7.27 million vehicles worldwide last year, ranking third behind Toyota Group (11.32 million) and Volkswagen Group (8.98 million).
On profitability, however, Hyundai moved ahead of Volkswagen. Toyota held the top spot with revenue of 50.4508 trillion yen (about 471.2 trillion won) and operating profit of 4.3128 trillion yen (about 40.2 trillion won) in its most recent fiscal year. Hyundai ranked third in revenue at 300.3954 trillion won and second in operating profit at 20.5460 trillion won.
Volkswagen posted operating profit of 8.9 billion euros (about 15.3 trillion won). It was the first time Hyundai’s annual operating profit exceeded Volkswagen’s, the officials said.
Hyundai also ranked near the top in operating margin, another key measure of profitability. Its operating margin was 6.8%, second globally behind Toyota’s 8.6%. The figure was more than double Volkswagen’s 2.8%, according to the data cited.
Officials attributed the improved performance to three initiatives led by Chung: shifting to electrification, expanding localization and moving upmarket. Chung set a goal of achieving 100% electrification in major markets including the United States and Europe by 2040 and ordered development of a range of electric vehicles, the officials said.
They also pointed to preemptive investment to raise local production capacity to 1.2 million vehicles a year to address tariff risks after the launch of the second Trump administration. Hyundai’s tariff costs last year totaled 7.2 trillion won, less than Toyota’s 1.2 trillion yen (11.2 trillion won), after Toyota’s U.S. tariff rate was cut to 15% ahead of South Korea, the officials said.
Hyundai also strengthened sales of higher-value models such as hybrids and sport utility vehicles and launched a standalone premium brand through its design-led strategy. Genesis, the premium brand launched in 2015 under Chung’s leadership, surpassed 1.5 million in cumulative global sales in 10 years.
“Most companies took a major hit from U.S. auto tariffs, but Hyundai held up well, posting higher operating profit than Volkswagen despite selling fewer vehicles,” an industry official said. “It has shown it is no longer competing only on value for money.”
* This article has been translated by AI.
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