Dive Brief:
- Hyundai Motor Group reported revenue of $3.1 billion (44.41 trillion won) in Q1, the highest quarterly revenue in company history, the automaker announced in its earnings report Thursday.
- Hyundai’s year-over-year revenue jumped 9.2% in Q1, with global sales of just over one million vehicles, a modest YoY increase of 0.6%. The company’s margins also improved by 2.1% in Q1, boosting its operating profit to 8.2%.
- The company cited brisk sales of electrified models for its record-high revenue, sales of which increased by 38.4% YoY to 212,426 vehicles in Q1.
Dive Insight:
Hyundai's strong Q1 revenue follows six consecutive months of record-setting sales for the company. The automaker said its revenue growth was boosted by robust sales in North America.
Earlier this month, Hyundai reported its highest March sales in company history of 87,019 vehicles, a 13% YoY increase. All-time monthly sales records were set in March for the Elantra, Santa Fe, Tucson, Ioniq 5, and full-size Palisade SUV. The company plans to maintain its sales momentum through 2025 with the launch of new hybrids and fully electric models under its Ioniq brand.
Q1 sales in Hyundai’s home market of South Korea increased 4% YoY to 166,360 vehicles. But sales in other markets decreased by 1.4% to 834,760 units, which the automaker blamed on unfavorable global market conditions.
Looking ahead, the automaker said it expects to achieve 3% to 4% revenue growth with an operating profit margin of between 7% and 8% for 2025. The company’s growth targets will be supported by strategic initiatives, including supply chain localization and investments to better adapt to changing market conditions, according to the release.
In March, Hyundai announced plans to invest $21 billion in its U.S. operations, which includes building a $5.8 billion steel plant in Louisiana. The facility will support electric vehicle production at the automaker’s assembly plants in Georgia and Alabama and may help the company mitigate auto industry tariffs.
