Hyundai Motor's performance in the first quarter of this year improved compared to the same period last year. In particular, the revenue reached a record high for the first quarter, attributed to increased sales of high-priced hybrid vehicles and favorable exchange rate effects due to the weak won.
On the 24th, Hyundai Motor held its financial performance conference call and announced that its operating profit for the first quarter was 3.6336 trillion won, a 2.1% increase from the same period last year. Revenue rose 9.2% year-on-year to 44.4078 trillion won, marking the highest figure ever for a first quarter. Net profit for the period was 3.3822 trillion won, an increase of 0.2%.
Global sales in the first quarter registered 1,001,120 units, a decrease of 0.6% compared to the same period last year. In the domestic market, 166,360 units were sold, a 4% increase year-on-year, while in the United States, sales increased by 1.1% to 242,729 units. However, total overseas sales fell to 834,760 units, down 1.4% due to increased external uncertainties.
Global eco-friendly vehicle sales recorded 212,426 units, an increase of 38.4% compared to the same period last year, driven by expanded electric vehicle sales and strengthened hybrid line-up. Of this, electric vehicles accounted for 64,091 units, while hybrids totaled 137,075 units.
Although overall sales decreased, Hyundai Motor explained that hybrid vehicle sales reached an all-time high and the performance in the financial institutional sector also improved, leading to increases in revenue and operating profit. Additionally, the sustained strength of the dollar and weakness of the won were noted as factors contributing to the improved performance. In the first quarter, the average exchange rate of the won against the dollar recorded 1,453 won, up 9.4% from the same period last year.
A Hyundai Motor representative noted, 'Despite a decline in sales in emerging markets due to the expansion of macroeconomic uncertainties, the proportion of high-value-added vehicle types such as hybrid vehicles is increasing, maintaining qualitative growth.'
However, Hyundai Motor predicted that drastic changes in tariffs and trade environments and economic downturns would act as risk factors for future operations. The U.S. administration under Donald Trump has imposed a 25% tariff on all imported cars starting this month. Consequently, forecasts indicate that Hyundai Motor's performance will slow from the second quarter.
Meanwhile, Hyundai Motor reported that, according to the value-up program announced last year, the dividend for common stock in the first quarter was set at 2,500 won per share, a 25% increase compared to the same period last year (2,000 won). They also announced a shareholder return plan that simultaneously conducts '1% stock buyback' and 'cancellation of treasury shares' for enhancing shareholder value, which was implemented last year, in line with the medium- to long-term shareholder return policy announced in 2023.
A Hyundai Motor representative said, 'While difficulties are expected due to macroeconomic changes, we will strive to diligently implement the shareholder return policy promised in the past to enhance shareholder value.'