Hyundai Motor Co. reported record first-quarter revenue, driven by strong hybrid sales across key markets including the US, despite mounting global uncertainties such as tariffs and Middle East tensions.
From January to March, its revenue rose 3.4 percent year-on-year to 45.9 trillion won ($31 billion). Hybrids accounted for a record 17.8 percent of total sales. The automaker’s share in global markets and the US increased to 4.9 percent and 6 percent, respectively.
However, the company’s operating profit fell 30.8 percent to 2.5 trillion won, with an operating margin of 5.5 percent. Profitability was weighed down by US auto tariffs, which resulted in an 860 billion won loss, along with higher incentives, Middle East-related costs, and the temporary halt in sales of the Palisade SUV.
Global sales declined 2.5 percent to 976,219 units. Sales in North America and Europe each decreased by 4.4 percent and 7.4 percent, to roughly 150,000 units and 140,000 units.
Despite declines in operating profit and sales volume, Hyundai reaffirmed its full-year operating margin guidance of 6.3-7.3 percent.
To drive growth, Chief Financial Officer Lee Seung-jo said the company planned to launch its Ioniq electric vehicle lineup in China in the second half of this year with BAIC Group.
Lee said, “Leveraging local partnerships, the first model will feature cost-efficient lithium iron phosphate batteries from CATL and autonomous driving technology developed with Momenta,” alongside joint sourcing efforts with BAIC Group to enhance cost competitiveness.
Hyundai is also accelerating its software-defined vehicle strategy by combining its hardware capabilities with autonomous driving unit 42dot’s software expertise under CEO Park Min-woo.
Lee noted collaboration with Nvidia would not contradict Hyundai’s push for developing its own autonomous-driving model but accelerate progress through access to data from the chipmaker’s partners. He added that an SDV pace car will be deployed on public roads in the second half of this year for validation.
At Boston Dynamics, Hyundai Motor Co.'s US robotics subsidiary, the board is currently selecting a new CEO, while plans for a 30,000-unit production facility by 2028 are on track.
Addressing a supply glitch issue prompted by a fire at its C-engine valve component supplier in Korea, Lee said alternative parts were expected to be deployed as early as April, with lost output to be recovered in the second half of this year through additional global production.
hyejin2@heraldcorp.com
