Hyundai Mobis increased sales of parts going into finished vehicles in the third quarter this year, recording sales 1 trillion won higher than a year earlier, but operating profit fell 14% due to U.S. tariffs. The company effectively took the full hit from the U.S. government's 25% high tariff. Hyundai Mobis said it will build technological competitiveness to respond to uncertainty.
Hyundai Mobis disclosed on the 31st that it posted third-quarter sales of 15.0319 trillion won, operating profit of 780.3 billion won, and net profit of 930.5 billion won this year. Compared with the same period last year, sales rose 7.4%, but operating profit fell 14.1%. A Hyundai Mobis official said, "As the tariff burden increased, the module and core parts manufacturing institutional sector, our main business area, swung to a loss, which had a big impact."
Sales were able to maintain growth thanks to steadily increasing supply volumes of module products and core parts. In particular, the ramp-up of the new electrification plant in the United States drove volume gains and boosted sales, and Hyundai Mobis said global demand for after-service (AS) parts continued and a favorable exchange rate also supported top-line growth.
Hyundai Mobis is noting that, with detailed agreement reached recently in the South Korea–U.S. tariff talks, tariffs on automobiles and parts have been cut to 15% from the previous 25%. The company plans to minimize the tariff impact by strengthening product competitiveness and improving profitability.
To that end, Hyundai Mobis plans to build its technological competitiveness. It plans to invest more than 2 trillion won in research and development by the end of the year, aiming to strengthen competitiveness in core mobility businesses such as electrification and vehicle electronics. A Hyundai Mobis official said, "We will strengthen technology and continue to increase orders in the global market."