Hyundai Motor First-Quarter Revenue Rises Without Profit Growth as Net Profit Falls 23.6% Year-on-Year
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Hyundai Motor's Q1 2026 net profit fell 23.6% YoY to 2.59 trillion won, missing expectations, primarily due to US auto tariffs, rising raw material costs, and increased investment, totaling 860 billion won in tariff-related costs. Despite a 2.5% YoY decline in global vehicle sales to 976,000 units, group revenue reached a record 45.94 trillion won, up 3.4% YoY, driven by strong hybrid sales and financial services growth. The company anticipates a persistent challenging environment, focusing on new model launches and electrification to drive future growth.
TradingKey - Hyundai Motor released its first-quarter 2026 financial report. During the period, net profit was 2.59 trillion won (KRW, same hereafter), down 23.6% year-on-year and up 118.3% quarter-on-quarter; operating profit was 2.51 trillion won, down 30.8% year-on-year, missing market expectations of 2.81 trillion won.
Hyundai Motor attributed the decline in profit to the impact of U.S. auto tariffs, rising raw material costs, and increased investment. According to Hyundai, tariff-related costs for the quarter reached 860 billion won.
During the period, total group revenue increased by 3.4% year-on-year to a record high of 45.94 trillion won, representing a 1.9% decrease quarter-on-quarter. Specifically, automotive revenue was 34.54 trillion won, down 0.5% year-on-year; financial services revenue was 8.99 trillion won, up 21.5% year-on-year; and other revenue was 2.41 trillion won, up 5.1% year-on-year.
Hyundai stated that strong growth in hybrid vehicle sales and improved performance in its financial services business helped offset the decline in overall vehicle sales.
During the period, the gross margin was 5.5%, down 2.7 percentage points year-on-year and 1.9 percentage points quarter-on-quarter.
During the period, the company's global vehicle sales fell 2.5% to 976,000 units due to slowing global demand and intensified competition, reflecting weak overall market demand. In contrast, the U.S. and Indian markets grew against the trend, with sales up 0.3% and 8.5%, respectively. The company stated that the primary reason was rising oil prices caused by geopolitical conflicts in the Middle East, which in turn boosted U.S. demand for hybrid vehicles. Its U.S. market share has risen to 6% from 5.6% in the same period last year.
Looking ahead, Hyundai Motor stated that it expects the challenging business environment to persist due to macroeconomic uncertainty, geopolitical risks, and escalating trade tensions. The company plans to drive growth by launching new models, expanding its high-value vehicle lineup, and accelerating its electrification process while adopting region-specific strategies.
At the close of Korean trading, Hyundai Motor shares fell 1.66% to 532,000 won.
This content was translated using AI and reviewed for clarity. It is for informational purposes only.
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