Hyundai cuts full-year targets after strikes, though operating profit rises
Hyundai Motor's third-quarter operating profit rose 5.5 percent, but it sold 11 percent fewer vehicles. The company cut its sales, margin and investment targets.
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Hyundai Motor posted third-quarter operating profit of 2.68 trillion won (about $1.9 billion), up 5.5 percent from a year earlier, South Korean media reported on Oct. 29. Revenue fell 3.4 percent to 45.1 trillion won, and net profit dropped 24.2 percent. Wholesales fell 11.3 percent to 920,710 vehicles, and by 27.2 percent in its home market of South Korea.
The company cited strikes at its Korean plants, a fire at a supplier and weak sales in the Middle East, according to Financial News; rising raw material prices also pushed up costs. The impact of U.S. tariffs is continuing, Seoul Economic Daily reported. Hybrid sales rose 3.8 percent, while battery-electric sales fell 9.2 percent.
Hyundai cut its 2026 sales target to 4.0 million vehicles from just over 4.16 million, its margin forecast to 5.5-6.5 percent from 6.3-7.3 percent, and automotive investment to 16 trillion won from 17.8 trillion. Lee Seung-jo, head of the finance division, said: "We expect cost pressures to continue into the fourth quarter."