Hyundai Motor and Kia have achieved a significant milestone in the first half of the year, selling 3,597,255 vehicles globally and reaching a combined revenue of 153 trillion won. This success comes despite a challenging business environment marked by the Middle East conflict and U.S. tariffs, driven by a focus on premium offerings, a surge in eco-friendly vehicles, and market diversification. Notably, Kia set a record by selling 1.63 million electric and hybrid vehicles in the first half, the highest since the company's founding in 1962.
According to financial information provider FnGuide, the combined revenue for Hyundai and Kia in the first half of this year is projected to be 153.7141 trillion won, a 2.4% increase from 150.616 trillion won in the same period last year. However, the companies' combined operating profit is expected to decline by 17.1% to 10.7795 trillion won, down from 13.086 trillion won a year earlier. While revenue has reached an all-time high, profitability has been impacted by U.S. tariff burdens, supply chain disruptions for Hyundai parts, and a slowdown in global demand due to the Middle East conflict.
Hyundai's projected revenue and operating profit for the first half are 95.9032 trillion won and 5.7902 trillion won, respectively. This represents a 3.5% increase in revenue compared to 92.6945 trillion won in the first half of last year, but a 20% decrease in operating profit from 7.2352 trillion won. The figures include projections for the second quarter, where revenue is expected to rise by 3.4% year-on-year to 49.9367 trillion won, but operating profit is anticipated to drop by 9.9%.
For Kia, the second quarter is projected to see revenue and operating profit rise by 8.5% and 0.7%, respectively, reaching 31.8435 trillion won and 2.7852 trillion won. This positions Kia's first-half revenue at an estimated 61.4108 trillion won, a 7.1% increase from 57.3671 trillion won last year, likely marking a record high. Despite the strong second-quarter performance, operating profit is expected to fall by 13.6% to 4.9893 trillion won compared to 5.7734 trillion won last year.
The increase in revenue, despite declining profitability, is attributed to the rise of eco-friendly vehicles. Analysts suggest that sales of high-value models like electric and hybrid vehicles have driven growth, even amid a global demand slowdown due to the Middle East conflict.
In the first half of this year, Hyundai and Kia's combined global sales totaled 3,597,255 vehicles, a 1.6% decrease from 3,654,469 in the same period last year. However, sales of eco-friendly vehicles rose by 25.1% to 301,286 units. Specifically, Hyundai's cumulative electric vehicle sales reached 39,575 units, a 46.5% increase year-on-year, while Kia's sales surged by 151.1% to 72,078 units, marking a record high.
Looking ahead, Hyundai and Kia plan to start production of the Sportage HEV and EV2 at the HMGMA (Hyundai Motor Group Metaplant America) in the second half of the year. They also aim to introduce new models, including a fully revamped Elantra and Tucson, to enhance profitability in North America. Additionally, they will strengthen the HEV lineup of their premium brand Genesis and launch the flagship electric SUV GV90. Kim Seong-rae, a researcher at Hanwha Investment & Securities, stated, "Despite global low demand, Hyundai Motor Group continues to maintain solid sales, and we expect a recovery in profits in key markets like the U.S. and Europe starting in the second half with the launch of new eco-friendly vehicles."
* This article has been translated by AI.
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