Hyundai’s net profits drop in 2025, hit by US tariffs

Financial Performance - Hyundai Motor Company reported a 22% drop in net profits to KRW 10.365 trillion (US$7.2 billion) in 2025, primarily due to the impact of US import tariffs introduced in April 2025 [1] - Operating profits decreased by 19.5% to KRW 11.458 trillion (US$8.0 billion) as the company absorbed an additional KRW 4.1 trillion in costs related to the US tariffs [3] - The fourth quarter of 2025 was particularly challenging, with net profits plunging by 52% to KRW 1.18 trillion (US$821 million) [1] Revenue and Sales - Revenues increased by 6.3% to KRW 186.254 trillion (US$130 billion) in 2025, despite a 0.1% decline in global vehicle sales to 4,138,389 units [2] - The rise in revenues was supported by an improved product mix, including a 27% increase in eco-friendly vehicles to 961,812 units [2] Market Outlook - Hyundai forecasts a slight increase in global vehicle sales to 4.158 million units in 2026, with revenues expected to rise by 1% to 2% to KRW 190 trillion [5] - Sales projections for key markets in 2026 include North America at 1,231,000 units, Europe at 601,000 units, India at 592,000 units (+3%), South Korea at 700,000 units (-2%), and South America at 328,000 units (+0.1%) [5] Challenges - A Hyundai official described 2025 as a challenging year due to weakening global demand, increased competition from Chinese automakers, and uncertainties surrounding import tariffs [4]