Hyundai Motor reported that its third-quarter revenue fell for the first time in 25 quarters, dropping 3.4% year-over-year to 45兆1,102億ウォン. Despite the top-line contraction, the automaker posted a 5.5% increase in operating profit to 2兆6,772億ウォン, driven by a favorable exchange rate and robust sales of high-margin hybrid vehicles.
Production Strains and the Revenue Contraction
The revenue drop marks the first contraction compared to the same period a year earlier since the second quarter of 2020, when the global automotive market stalled during the initial wave of the coronavirus pandemic. Total global wholesale sales slumped 11.3% to 920,710 units during the third quarter. Domestic operations faced steep hurdles due to labor strikes and fewer business days during the Chuseok holiday, sending local sales down 27.2% to 13万1,468台. Overseas sales also contracted, falling 8.0% to 78万9,242台. Production recovery was further delayed by lingering supply chain setbacks stemming from a parts supplier fire that occurred earlier in the second quarter.
Lee Seung-joo, head of Hyundai’s finance division and vice president, noted that while fixed costs per vehicle rose alongside raw material prices and increased incentives in core markets, earnings found relief elsewhere. Favorable foreign exchange conditions, reduced U.S. tariffs, and targeted cost optimization yielded an approximate 1400億ウォン boost to operating income. The average exchange rate hovered at 1,423 won per dollar, down 38 won from the previous year, generating a currency translation effect worth 5,000億ウォン.
Hybrid Momentum and Strategic Downward Adjustments
Retail sales rose 3.5% overall, buoyed by strong demand for hybrid models and the Genesis luxury lineup. Global hybrid sales reached 16万7,414台, up 3.8% from a year ago, pushing the segment’s share of total sales up 2.7 points to 18.2%. In the United States, Hyundai maintained a 6.6% market share, marking the sixth quarter holding in the 6% range, though European sales dropped 18% to 12万3,000台.
Reflecting global demand slowdowns and production bottlenecks, Hyundai revised its annual sales target downward to 400万台, compared to the previous target of 415万8,300台. The company also adjusted its full-year operating margin outlook from a previous range of 6.3~7.3% down to 5.5~6.5%. While core research and development spending remains intact, capital expenditures are being prioritized and rescheduled.
Localizing Hybrid and EREV Production in Alabama
Hyundai Motor Manufacturing Alabama announced a $450 million investment to expand its manufacturing infrastructure for hybrid vehicles and extended-range electric vehicles. The facility will add local production lines for models such as the Tucson Hybrid and the Santa Fe EREV, alongside expanded engine manufacturing capabilities. Shifting Tucson Hybrid production from domestic plants in Ulsan to the U.S. is expected to ease tariff burdens.
The company declared a third-quarter dividend of 2,500 won per share for both common and preferred stock, with the record date set for November 30 and payment scheduled for December 30.
