Hyundai Motor Posts Record Sales but Operating Profit Down 19.5% Due to Tariff Impact (Comprehensive)

Sales Reach 186.2545 Trillion Won, Operating Profit at 11.4679 Trillion Won
Operating Profit Down Due to Tariffs and Incentives
Surpassed 1 Million Wholesale Sales in the United States
Global Sales Target Set at 4,158,300 Units This Year
Dividend Set at 10,000 Won, Achieving a Payout Ratio of 27.7%
17.8 Trillion Won Investment in Core Technologies for SDV Transition

Hyundai Motor Company was unable to avoid a decline in profitability last year due to the impact of the 25% tariff imposed by the United States.

On January 29, Hyundai Motor Company announced that its consolidated annual sales for last year reached a record high of 186.2545 trillion won, up 6.3% from the previous year. However, annual operating profit was tallied at 11.4679 trillion won, representing a 19.5% decrease from the previous year. Ordinary profit stood at 13.8419 trillion won, and net profit attributable to owners of the parent, including non-controlling interests, was 10.3648 trillion won.

Sold 3,425,435 Units Overseas... Surpassed 1 Million in the United States

In 2025, Hyundai Motor Company sold 4,138,389 units in the global market (712,954 units domestically and 3,425,435 units overseas). This represents a 0.1% decrease compared to the same period of the previous year. For eco-friendly vehicles, sales reached 961,812 units, a 27.0% increase year-on-year, including 275,669 electric vehicles and 634,990 hybrid vehicles.

In the domestic market, Hyundai Motor Company sold 712,954 units, up 1.1% from the previous year, driven by strong sales of new SUV models such as the Ioniq 9, Palisade HEV, and Nexo.

In overseas markets, sales decreased by 0.3% year-on-year to 3,425,435 units. However, in the United States, sales increased by 1.9% year-on-year to 1,006,613 units, thanks to a diversified SUV lineup and robust HEV sales. For the first time since its founding, Hyundai Motor Company surpassed 1 million annual wholesale sales in the United States.

Hyundai Motor Company and Kia Yangjae Office Building Exterior. Hyundai Motor Company

In 2025, Hyundai Motor Company's global sales of eco-friendly vehicles reached 961,812 units, a 27.0% increase from the previous year, driven by the expansion of the hybrid lineup and increased sales of SUV hybrids in North America. Of these, 634,990 were hybrid vehicles and 275,669 were electric vehicles.

Operating profit for 2025 was 11.4679 trillion won, a 19.5% decrease from the previous year due to the impact of U.S. tariffs and increased global incentives. However, the operating margin (6.2%) achieved the profitability target set in the guidance.

A Hyundai Motor Company representative stated, "2025 was a challenging year due to slowing global demand, intensified competition in key regions, increased price competition stemming from Chinese companies' overseas expansion, and uncertainties such as tariffs. However, through ongoing efforts to improve the product mix and the flexibility of sales strategies utilizing various powertrains, we achieved higher sales growth than our guidance and maintained an operating margin in line with our profitability target."

2026 Annual Sales Target: 4,158,300 Units

Hyundai Motor Company expects that the unpredictable business environment will persist this year, with slowing growth in major global markets, intensified competition in emerging markets, and increased macroeconomic uncertainty.

To overcome these challenges, Hyundai Motor Company plans to secure continuous growth momentum through a thorough analysis of complex internal and external management risks, meticulous internal diagnostics, and bold innovation aimed at building fundamental future competitiveness.

Hyundai Motor Company has provided consolidated annual guidance and announced its investment plans for 2026. The company has set its 2026 annual wholesale sales target at 4,158,300 units. Additionally, the company aims for a consolidated revenue growth rate of 1.0-2.0% and a consolidated operating margin of 6.3-7.3% compared to the previous year.

Regarding major investment plans for 2026, Hyundai Motor Company announced that it will invest a total of 17.8 trillion won to secure future competitiveness. This includes 7.4 trillion won in R&D investment, 9 trillion won in capital expenditures (CAPEX), and 1.4 trillion won in strategic investments, focusing on the development of eco-friendly vehicles such as HEVs and EREVs, as well as investments in core technologies for autonomous driving and AI for the transition to SDVs.

Hyundai Motor Company Ioniq 9. Hyundai Motor Company

Finally, in line with its shareholder return policy, Hyundai Motor Company has set the year-end dividend for 2025 at 2,500 won per share. This is to ensure the minimum annual dividend of 10,000 won per share under the shareholder return policy, despite a 24.6% decrease in net profit attributable to owners of the parent under consolidated standards in 2025. Accordingly, the annual dividend for 2025 is set at 10,000 won per share, including a total of 7,500 won distributed during the first to third quarters.

Based on the three-year (2024-2026) mid- to long-term shareholder return policy announced in 2023, Hyundai Motor Company retired 1% of its treasury shares in April last year. To achieve a total shareholder return (TSR) of over 35% in 2025 and to fulfill the three-year plan to repurchase up to 4 trillion won in treasury shares announced as part of the value-up program in August 2024, the company will repurchase approximately 400 billion won worth of treasury shares. All shares repurchased this time will be retired in 2026 to enhance shareholder value, with none used for employee compensation purposes.

A Hyundai Motor Company representative added, "Although net profit attributable to owners of the parent under consolidated standards in 2025 decreased by about 25% compared to the previous year, we implemented a year-end dividend of 2,500 won to keep our promise to shareholders. We will continue our efforts for sustainable growth and to enhance shareholder value, even amid challenging changes in the business environment."