South Korean automaker Hyundai Motor Company reported a 23.6% drop in net earnings to KRW 2.585 trillion (US$ 1.74 billion) in the first three months of 2026, down from KRW 3.38 trillion a year earlier, citing a tougher global business environment, including the recent introduction of import tariffs in the US, increased investments, and rising raw material and energy costs due to the US-Iran conflict.
Operating income in the three-month period fell by 31% to KRW 2.5 trillion. The company pointed out that US tariff-related costs alone amounted to KRW 860 billion in the three-month period.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Global revenues rose by 3.4% to KRW 45.94 trillion (US$ 31 billion) in the first quarter of 2026, up from KRW 44.4 trillion a year earlier, helped by favourable foreign exchange rates and an improved product mix. Global wholesale deliveries fell by 2.5% to 976,000 vehicles, with sales in the US down slightly at 243,000 units; India 167,000 units (+8.5%); South Korea 159,000 (-4%); Europe 140,000 (-8%); and South America 74,000 (+8%). Global hybrid-electric vehicle (HEV) sales rose by 27% to 174,000 units, while battery electric vehicle (BEV) sales fell by 8% to 59,000 units.
Hyundai noted that its global market share rose to 4.9% during the quarter from 4.6% a year earlier, with its market share in the US market rising from 5.6% to 6.0%. The company continued to struggle in China, however, where its sales fell by 8% to just 27,000 units. Earlier this month, its main local joint venture, Beijing Hyundai Motor Company, launched the Ioniq BEV brand to help revive sales in the country – which are now a small fraction of their peak levels just ten years ago.
A company spokesperson told reporters: “Overall demand in the global automotive market continued to face challenges in the first-quarter of 2026, with total sales declining by 7.2% year-on-year. In this environment, Hyundai maintained a solid sales momentum despite the broader market downturn, by expanding sales of higher value-added models such as hybrid vehicles.”
