Hyundai Q3 Profit Rises 5.5% as EV Sales Fall 9.2%
Hyundai Motor’s third-quarter operating profit rose 5.5% to KRW 2.68 trillion even as revenue, vehicle volume, net profit and battery-electric sales all declined.
The Korean automaker attributed the profit increase to favorable exchange rates, cost controls and a stronger mix led by hybrids. Its operating margin reached 5.9%, up 0.5 percentage points from a year earlier.
Revenue fell 3.4% to KRW 45.11 trillion, while net profit including non-controlling interests dropped 24.2% to KRW 1.93 trillion. Hyundai reports under Korean International Financial Reporting Standards.
Hyundai’s Q3 results at a glance
- Wholesale vehicle volume: 920,710, down 11.3%.
- Revenue: KRW 45.11 trillion, down 3.4%.
- Operating profit: KRW 2.68 trillion, up 5.5%.
- Operating margin: 5.9%, up 0.5 percentage points.
- Net profit: KRW 1.93 trillion, down 24.2%.
- Hybrid sales: 167,414, up 3.8%.
- Battery-electric sales: 69,117, down 9.2%.
Fewer working days and strike-related production constraints contributed to the volume decline. Korean wholesale sales fell 27.2% to 131,468 units; sales outside Korea dropped 8.0% to 789,242.
Hybrids gained share while EV volume fell
Electrified vehicles—including hybrids, battery-electric vehicles, plug-in hybrids and fuel-cell vehicles—accounted for 26.7% of Hyundai’s global third-quarter sales, 2.4 percentage points more than a year earlier.
That headline masks a split between powertrains. Hybrid sales increased 3.8% to 167,414 units and reached an 18.2% share of Hyundai’s total, up 2.7 percentage points. Battery-electric sales fell 9.2% to 69,117. Total electrified sales declined 2.7% to 245,540 vehicles.
The improved operating profit therefore reflects mix and cost factors rather than broad volume growth. Hyundai’s statement that hybrids supported profitability is a company explanation; the release does not publish a separate profit figure for its hybrid business.
Hyundai’s separate retail-sales release showed stronger regional performance in North America and India. North American retail volume increased 3.2% in the quarter and India rose 9.5%, while Europe fell 18.3%, Korea declined 26.7% and China dropped 50.2%. Retail and wholesale figures measure different points in the distribution chain, so the 931,211 retail total should not be directly substituted for the earnings release’s 920,710 wholesale figure.
Full-year targets move lower
Hyundai cut its 2026 wholesale target to 4 million vehicles from 4.16 million. It also lowered its target operating margin to 5.5%–6.5%, from 6.3%–7.3%, citing weaker industry demand, production disruptions, lower factory utilization and higher raw-material costs.
The company kept its consolidated revenue-growth target at 1%–2% but reduced planned automotive investment to KRW 16 trillion from KRW 17.8 trillion after reviewing project priorities and timing.
Hyundai said the revisions do not indicate weaker underlying competitiveness. That is management’s assessment, not an independently established conclusion. The lower volume, margin and investment targets show that the company expects the difficult operating environment to continue through year-end.
Product and regional strategy
Hyundai plans to support production and sales with new models including the Tucson and Elantra and with a regional mix of combustion, hybrid and electric powertrains. The company’s retail report says North American hybrid sales grew 56% through the first nine months and that 58 of more than 100 planned global product launches through 2030 will be in that region.
Chiefs Review recently covered the refreshed IONIQ 6’s UK pricing and range. That model announcement shows Hyundai is still expanding its EV offer even as the quarter’s global battery-electric volume declined. The company is also pursuing a larger manufacturing and product plan in India, detailed in our report on Hyundai Motor Group’s $15.5 billion India investment.
Featured image: A Hyundai Tucson Hybrid displayed at Hyundai Motorstudio Goyang in August 2023. Archive photo used illustratively; it does not depict Hyundai’s financial results. Photo by Damian B Oh via Wikimedia Commons, licensed under CC BY-SA 4.0.
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