Hyundai profit tops estimates on higher North America, hybrid sales

Hyundai Motor Co. reported first-quarter earnings that topped analysts’ expectations, driven by strong vehicle sales from North America and favourable exchange rates, which helped ease concern over slowing demand overall and mounting tariff risks.

Hyundai Tops Estimates 

Operating profit was 3.6 trillion won ($2.5 billion) for the three months ended March 31, compared with the 3.5 trillion won median estimate compiled by Bloomberg. Revenue rose 9.2% from a year ago to 44.4 trillion won, South Korea’s top automaker said.

Shares were down 0.3% in Seoul after the earnings release.

The results reflect Hyundai’s consistent efforts to sustain profitability despite a slight decline in overall vehicle sales in the first quarter, supported by strong performance in North America and solid demand for hybrid and electric models. A weaker Korean won in the first quarter also boosted profit from overseas sales.

Wholesale deliveries during the first quarter were slightly over 1 million, down 0.6% from a year ago. Unit sales in North America climbed 2.4%, while those in Europe lost 3.8%. China saw a 38.1% plunge, while India posted a 4.2% decrease.

The first-quarter earnings came after Hyundai Motor unveiled a plan in March to invest a record $21 billion in the US through 2028, aiming to expand production and create about 14,000 direct jobs amid growing trade tensions. The push includes $9 billion to boost factory output to about 1.2 million vehicles annually.

Threat Of Tariffs

The investment decision was made as President Donald Trump ramps up protectionist trade policies, including proposed “reciprocal” tariffs that would impose levies on foreign goods. Hyundai’s move highlights how global automakers are under pressure to localise operations and hedge against escalating trade risks.

While the US tariffs could pose significant headwinds, the impact may be partially offset as Hyundai’s plant in the US state of Georgia gradually increases production capacity, LS Securities Co. analyst Byunggeun Lee wrote in a note before the earnings announcement.

Beyond the US, weak consumer sentiment and uneven progress on the adoption of electric vehicles in Europe may continue to weigh on its profits. Hyundai earlier said it’s planning a total investment of 16.9 trillion won this year, up from 14.6 trillion won in 2024. It’s also targeting a 7% to 8% operating margin for the year.

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