Hyundai Motor reported stronger earnings in the first quarter, with revenue reaching an all-time high for the January–March period. The automaker credited the performance to increased sales of high-margin hybrid models and favorable currency exchange conditions driven by a weaker South Korean won.
In a conference call on Apr. 24, Hyundai said operating profit for the quarter rose 2.1 percent year-on-year to 3.63 trillion won ($2.5 billion). Revenue climbed 9.2 percent to 44.41 trillion won ($30 billion), the highest ever recorded by the company in a first quarter. Net income edged up 0.2 percent to 3.38 trillion won ($2.3 billion).
Global vehicle sales slipped 0.6 percent from the same period last year to 1,001,120 units. Domestic sales rose 4 percent to 166,360 units, and sales in the United States increased 1.1 percent to 242,729 units. However, overall overseas sales declined 1.4 percent to 834,760 units amid growing global economic uncertainty.
Sales of eco-friendly vehicles surged 38.4 percent year-on-year to 212,426 units, boosted by the expansion of electric vehicle offerings and an enhanced hybrid lineup. Of these, electric vehicle sales totaled 64,091 units, while hybrid sales reached 137,075 units.
Despite the slight drop in total vehicle sales, Hyundai said higher hybrid volumes and improved earnings from its financial services unit contributed to gains in both revenue and operating profit. The company also cited foreign exchange tailwinds, with the won averaging 1,453 per dollar in the first quarter, a 9.4 percent depreciation from a year earlier.
“Although macroeconomic uncertainty reduced sales in emerging markets, a higher proportion of high-value-added models, such as hybrids, has supported continued qualitative growth,” a company official said.
Nonetheless, Hyundai warned that abrupt shifts in the global trade environment—including higher tariffs and a potential economic slowdown—remain key risks. Beginning this month, the administration of U.S. President Donald Trump has imposed a 25 percent tariff on all imported vehicles, prompting concerns of a potential slowdown in Hyundai’s performance starting in the second quarter.
As part of its “value-up” initiative announced last year, Hyundai raised its first-quarter dividend to 2,500 won per common share, up 25 percent from 2,000 won a year earlier. The automaker also reaffirmed its shareholder return strategy unveiled in 2023, which includes the cancellation of 1 percent of outstanding shares and the continued repurchase and retirement of treasury stock to enhance shareholder value.
“While we anticipate challenges stemming from shifts in the broader economic landscape, we remain committed to faithfully executing our previously announced shareholder return plans,” the official added.
