Hyundai Motor 2025 Business Results: Electrified Sales Surge, Profit Hit by Tariffs

On January 29, Hyundai Motor announced its business results for 2025, reporting stable global performance amid ongoing trade and cost pressures. The company recorded total worldwide sales of 4.14 million vehicles, reflecting a marginal 0.1% year-over-year decline compared to 2024, as demand remained resilient in key markets.
A major highlight of the Hyundai Motor 2025 business results was the sharp rise in electrified vehicle sales. Global deliveries of electrified models reached 961,812 units, representing a 27% year-over-year increase and reinforcing the company’s transition toward low-emission mobility solutions across regions.

Electrified and Hybrid Vehicle Performance

Growth in electrification was primarily driven by hybrids, which continued to gain traction across multiple markets. Hyundai’s expanding lineup and improved fuel efficiency positioning supported this upward momentum throughout the year.

Record Hybrid Sales Contribution

Hybrid electric vehicle sales increased 27.9% year-over-year, reaching a record-high share of 15.3% of Hyundai’s total global sales. This performance underscores the growing consumer preference for hybrid powertrains as a transitional technology toward full electrification.

Financial Performance in 2025

Hyundai achieved record annual revenue despite profitability pressures. Total sales revenue climbed 6.3% year-over-year to KRW 186.3 trillion, supported by favorable exchange rates and a higher mix of value-added models across the portfolio. Operating profit declined 19.5% to KRW 11.47 trillion, reflecting the impact of global trade uncertainty and rising costs. Tariff-related expenses alone accounted for KRW 4.11 trillion, significantly weighing on margins. Net profit fell 21.7% year-over-year to KRW 10.36 trillion, while the operating profit margin stood at 6.2%.

Q4 2025 Results and Market Pressures

In the fourth quarter of 2025, Hyundai sold 1,033,043 vehicles globally, down 3.1% compared to the same period last year. Quarterly revenue edged up 0.5% year-over-year to KRW 46.8 trillion, supported by strong demand for high-value hybrids and premium Genesis models.

Tariffs and Incentives Impact

Operating profit in Q4 dropped sharply by 39.9% year-over-year to KRW 1.70 trillion, with an operating margin of 3.6%. Increased sales incentives and intensified competition across the automotive industry, combined with tariff costs of KRW 1.46 trillion, contributed to the decline. Net profit attributable to the period decreased 52.1% to KRW 1.18 trillion, including non-controlling interests.

Outlook and 2026 Targets

Looking ahead, Hyundai Motor is targeting annual global sales exceeding 4.16 million units in 2026. The company also expects consolidated revenue growth in the range of 1.0% to 2.0% and aims to achieve an operating profit margin between 6.3% and 7.3%, supported by continued focus on electrified vehicles and disciplined cost management.