Hyundai Motor Company reported a 22% drop in net profits to KRW 10.365 trillion (US$7.2 billion) in 2025, blamed largely on the impact of the US import tariffs introduced last April. The fourth quarter was the worst for South Korea’s largest automaker last year, when net profits plunged by 52% to KRW 1.18 trillion (US$ 821 million).
Revenues rose by 6.3% to KRW 186.254 trillion (US$ 130 billion) last year, despite a 0.1% fall in global vehicle sales to 4,138,389 units amid sluggish demand. An improved product mix helped increase average selling prices, driven by a 27% rise in eco-friendly vehicles to 961,812 units – comprising mainly battery electric vehicles (BEVs) and hybrids.
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Operating profits dropped by 19.5% to KRW 11.458 trillion (US$ 8.0 billion) in 2025, as the company absorbed an additional KRW 4.1 trillion in costs related to the introduction of US tariffs last year. In April 2025, the US government applied a 25% tariff on imports of vehicles and components from South Korea, before reducing the tariff rate to 15% in November, although this apparently remains under discussion.
A Hyundai Motor official described 2025 as a challenging year, due to weakening global demand and greater competition in some key markets, including the aggressive overseas expansion by Chinese automakers, and uncertainties relating to import tariffs.
Hyundai is forecasting global vehicle sales to rise slightly to 4.158 million units in 2026, with revenues expected to rise by between 1% and 2% to KRW 190 trillion, helped by continued product mix improvement which will help offset rising competition and economic uncertainty. Sales in North America are forecast to increase slightly to 1,231,000 units, while sales in Europe are expected to be flat at 601,000 units; India 592,000 units (+3%), South Korea 700,000 units (-2%), and South America 328,000 units (+0.1%).
