South Korean automaker Hyundai Motor Company reported a 20.5% drop in net profits to KRW 2.548 trillion (US$1.8 billion) in the third quarter of 2025, down from KRW 3.2 trillion in the same period last year, with the imposition of import tariffs by the US government continuing to weigh on the company’s bottom line. Operating profit fell by 29.1% to KRW 2.537 trillion.
The US government introduced a 25% tariff on South Korean imports in April, with the automaker unable to pass on all of the cost increases to its customers. The tariff rate was recently negotiated down to 15% following prolonged meetings between the two governments, bringing it in line with US duties on imports from Japan and the European Union.
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Hyundai expects the lower auto tariffs to allow it to “compete on a more level playing field” with other global automakers in the US market.
The automaker reported a 2.6% year-on-year increase in global vehicle deliveries to 1.038 million during the quarter, while revenues rose by 8.8% to KRW 46,721 billion, helped by an improved product mix and favourable currency exchange rates. SUV sales rose by almost 9% to 659,000 units, while sales of electrified vehicles (including SUVs), rose by 25% to 252,000 units.
Domestic wholesale deliveries rose by 6.3% year-on-year to 181,000 units in the third quarter, while US sales rose by 2.4% to 257,000 units, and European sales were up by 7.9% at 150,000 units.
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By GlobalData
