Hyundai Motor Posts Operating Profit Decline for First Time in 4 Years... Sales Hit Record High (Update)

Operating Profit at 14.2 Trillion KRW, Down 5.9% Year-on-Year

Hyundai Motor Company announced on the 23rd that its operating profit for last year was 14.2396 trillion KRW, a 5.9% decrease compared to the previous year. This marked the first decline in four years since 2020. Sales revenue increased by 7.7% to 175.2312 trillion KRW, breaking the previous year's record high.

Total sales volume reached 4,141,959 units (wholesale basis), with eco-friendly vehicles totaling 757,191 units, including 218,500 electric vehicles and 496,780 hybrid vehicles, representing an 8.9% increase compared to the previous year.

Fourth-quarter sales revenue was 46.6237 trillion KRW, up 11.9% year-on-year, driven by improved average selling price (ASP) due to expanded sales of high value-added models including hybrid electric vehicles (HEV) and the Genesis brand, as well as improved performance in the financial sector.

The operating profit margin was 6.1%, affected by increased incentives and exchange rate impacts related to sales warranty provisions caused by the year-end exchange rate rise.

A Hyundai Motor Company representative explained, "Although profit volatility has increased due to rapidly changing external conditions, growth continues with expanded sales in the North American market and an increasing share of hybrid vehicles."

Hyundai sold 1,066,239 units in the fourth quarter, a 2.2% decrease compared to the same period last year. Due to various factors such as weakened consumer sentiment caused by the deteriorating domestic economic situation and supply disruptions from heavy snowfall, domestic sales decreased by 4.6% year-on-year to 189,405 units. Sales in the North American region increased by 4.4% year-on-year to 294,384 units, but sales in China and Europe decreased by 1.6% to 876,834 units.

Eco-friendly vehicle sales in the fourth quarter totaled 209,641 units, including 145,732 hybrid vehicles and 53,035 electric vehicles, marking a 21.0% increase compared to the previous year.