Hyundai Motor's Sales Surge Despite Profit Decline Due to U.S. Tariffs

Hyundai Motor Co. has reported a significant drop in operating profits, despite achieving record quarterly sales, largely due to the impact of the Donald Trump administration's 25% tariffs. The company's resilience in sales is attributed to the strong performance of high-profit models like hybrid vehicles and favorable exchange rates.

Record Sales Driven by Eco-Friendly and SUV Models

The second quarter saw Hyundai's global sales volume increase by 0.8% year-on-year, with eco-friendly vehicles surging 36.4%. The launch of new models such as the Palisade and IONIQ 9 has significantly contributed to this growth, expanding the SUV ratio to 60.5%.

The Double-Edged Sword of Exchange Rates

The weakening of the won against the dollar has provided a temporary boost to Hyundai's sales, adding 879 billion won in the second quarter alone. However, the benefits were overshadowed by the 828 billion won operating loss due to U.S. tariffs.

Strategic Adjustments Amid Tariff Challenges

Hyundai Motor has adopted a flexible sales strategy to mitigate the impact of tariffs, focusing on optimizing production capacity and operating expenses. The company is also revising its parts sourcing structure to reduce costs and improve efficiency at its U.S. plants.

Future Outlook: Navigating Through Tariff Turbulence

Despite the current challenges, Hyundai remains committed to its strategic patience approach. However, industry insiders express concerns over the sustainability of this strategy, especially with the full-quarter impact of tariffs expected in the third quarter.