Overview
- Hyundai Motor’s third-quarter net fell 20.5% to 2.54 trillion won as operating profit dropped 29.1%, even as revenue hit a record 46.72 trillion won on higher global sales.
- The company said the 25% U.S. import tariff in place since April weighed on margins after pre-tariff inventory ran out, and it absorbed costs rather than raise prices as incentives increased in key markets.
- At a summit this week, President Donald Trump and President Lee Jae Myung agreed to cut tariffs on Korean vehicles to 15%, which Hyundai says would level competition with Japanese and European rivals.
- Seoul officials said the lower rate could apply retroactively from the first day of the month when an implementing bill is filed, with the government aiming to submit it in November; Hyundai is modeling impacts based on a Nov. 1 start.
- Hyundai plans to shift further toward gasoline hybrids, roll out new models, and consider more U.S. local production, while group results diverged as Hyundai Steel swung to a Q3 net profit on value-added sales and Hyundai Motor India posted a 14.3% Q2 profit rise with stronger margins.