Hyundai Motor's first quarter report card has been released. Sales have slightly decreased, but operating profit has rather increased. The rise in sales of profitable hybrids has contributed to the increase in operating profit.
Hyundai Motor Co. announced on the 24th during a management performance conference call that its results for the first quarter of 2025 were ▲ wholesale sales of 1,001,120 units, IFRS consolidation basis ▲ revenue of 44.4 trillion won (automobiles 34.7 trillion won, finance and others 9.6 trillion won) ▲ operating profit of 3.6 trillion won ▲ ordinary profit of 4.4 trillion won ▲ net profit of 3.3 trillion won (including non-controlling interests).
Despite a decrease in sales volume, Hyundai Motor's revenue for the first quarter of 2025 increased by 9.2% compared to the same period last year, thanks to the record-high sales of hybrids and improvements in the financial sector. The operating profit margin recorded 8.2%, despite increased incentives and expanded investment trends.
A Hyundai Motor representative noted, "Despite a decline in sales in emerging markets due to expanding macroeconomic uncertainties, the trend of increasing the proportion of high-value-added models such as hybrids is continuing to drive quality growth."
Hyundai Motor sold 1,001,120 units in the global market in the first quarter of 2025 (January to March). This is a 0.6% decrease compared to the same period last year. (※ based on wholesale sales) In the domestic market, 166,360 units were sold, marking a 4.0% increase compared to the same period last year, due to the base effect of shutting down the Asan plant for new car production last year. Overseas, sales in the United States reached 242,729 units, a 1.1% increase compared to the same period last year, but overall overseas sales decreased by 1.4% compared to the same period last year, totaling 834,760 units due to deteriorating external conditions.
In the first quarter of 2025, global sales of eco-friendly vehicles (including commercial vehicles) recorded 212,426 units, an increase of 38.4% compared to the same period last year, driven by the expansion of EV sales and the strengthening of the hybrid lineup. Among these, EVs accounted for 64,091 units, and hybrids accounted for 137,075 units.
Revenue in the first quarter of 2025 reached 44.4 trillion won, a 9.2% increase compared to the same period last year. This is the highest revenue recorded for a first quarter. Hyundai Motor maintained a rising trend in sales, aided by strong sales in the North American market and favorable foreign exchange rates. The average exchange rate of the won against the dollar in the first quarter of 2025 was 1,453 won, up 9.4% compared to the same period last year. The cost of sales ratio increased by 0.5 percentage points compared to the same period last year, reaching 79.8%. Although selling and administrative expenses increased due to higher marketing and research costs, the ratio of selling and administrative expenses to revenue remained the same as the previous year at 12.0%.
As a result, the operating profit for the first quarter of 2025 was 3.6 trillion won, a 2.1% increase compared to the same period last year, with an operating profit margin of 8.2%. This was attributed to favorable foreign exchange conditions and an increase in hybrid sales. Ordinary profit and net profit recorded 4.4 trillion won and 3.3 trillion won, respectively.
Hyundai Motor expects that the possibility of an economic recession due to sudden changes in tariffs and other trade environments will act as a risk factor for its business activities. The company also forecasts that various external variables, such as the deepening of trade conflicts between countries, will result in an unpredictable business environment. Based on the value-up program announced last year, Hyundai Motor has set its common stock dividends for the first quarter of 2025 at 2,500 won per share, a 25% increase from the same period last year (2,000 won). Additionally, Hyundai Motor announced a shareholder return plan, which will involve both '1% of issued shares to be bought back and canceled' and 'self-stock buyback for enhancing shareholder value' announced in 2023.
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