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.

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."