In an auspicious start to 2025, Hyundai Motor posted a 2% gain in its operating profit for the first quarter, amounting to 3.6 trillion won (approximately $2.5 billion). One significant reason for this bump was the weak South Korean currency, which improved earnings from overseas.
But there are bumps in the road. U.S. tariff programs are indeed proving to be another speed bump for Hyundai. To tackle this issue, a special task force has been set up by the company to look for ways to reduce dependence on importing auto parts. They are intending to use more local materials in the U.S. while increasing production in their newly built plant in Georgia—a part of a recently announced major investment injection of $21 billion.
Before the imposition of any auto tariffs in the United States, effective April 2, Hyundai saw an increase of 11% in car sales in America for the quarter. The situation may be uncertain, but the automaker is optimistic for the following months. Hyundai is confident of achieving a revenue increase of 3-4% and a stable operating margin of 7-8% With backing from the numbers, plans, and wheels, Hyundai seems to be ready to navigate through the bumps lying ahead.
