South Korean automaker Hyundai Motor Company reported an 11% year-on-year drop in net earnings to KRW 2.888 trillion (US$ 1.97 billion) in the second quarter of 2026, down from KRW 3.250 trillion a year earlier, reflecting higher raw material and energy costs resulting from the Middle East conflict, while domestic production was held back by a fire at a key engine parts supplier in March. Operating income in the three-month period fell by 21% to KRW 2,851 trillion.

Global revenues rose by 1.9% to KRW 49,215 trillion (US$ 33.5 billion) in the second quarter, up from KRW 48.287 trillion a year earlier, helped by an improved product mix and favourable exchange rates, while global sales volumes declined by 7% to 992,000 vehicles. Sales of electrified vehicles rose by 2% to 267,000 units, despite a 13% drop in battery electric vehicle (BEV) sales to 69,000 units.

Overall domestic sales declined by over 16% to 158,000 units, while deliveries in the US rose by 1% to 265,000 units; Europe 144,000 (-11%); India 139,000 units (+5%); South America 91,000 (+8%); and China 19,000 units (-37%).

The automaker left its full-year financial guidance unchanged, with new model launches in the second half of the year expected to help make up for the production loses in the second quarter, including the launch of a revamped Grandeur in South Korea, a redesigned Elantra sedan and Tucson SUV in the US, and the launch of a new entry-level BEV, the Ioniq 3, in Europe later in the year.