Hyundai reported a ₩2.54 trillion operating profit for Q3 2024, down 29% year-over-year, amid U.S. tariff pressures. Revenue hit a record ₩46.7 trillion, up 8.8%, driven by electric and hybrid vehicle demand in North America and Europe.
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U.S. tariffs cost Hyundai ₩1.8 trillion in Q3, up from ₩828 billion prior quarter.
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Hybrid vehicles comprised 20% of U.S. sales, the highest share to date.
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Europe saw 3.2% sales growth, with eco-friendly models at 49% of total.
Discover Hyundai’s Q3 2024 earnings: operating profit dips 29% to ₩2.54T amid tariffs, but record revenue surges. Explore impacts on EVs and hybrids. Stay informed on global auto trends—read now for key insights.
What are Hyundai’s Q3 2024 earnings highlights?
Hyundai’s Q3 2024 earnings showed an operating profit of ₩2.54 trillion ($1.8 billion), a 29% decline from the prior year, closely aligning with analyst estimates of ₩2.55 trillion. Revenue reached a record ₩46.7 trillion, up 8.8% year-over-year, bolstered by strong demand for electric and hybrid vehicles in key markets like North America and Europe.
How have U.S. tariffs affected Hyundai’s costs?
U.S. tariffs imposed a significant burden, costing Hyundai ₩1.8 trillion in the third quarter, more than double the ₩828 billion from the previous quarter. The company highlighted that changes in the trade environment, including these tariffs, pose a major risk to future profits, as stated in their earnings report. Despite this, U.S. retail sales grew 12.7% year-over-year, supported by electric vehicle tax incentives that expired in September and higher-margin models. Hyundai anticipates slower sales in emerging markets but did not provide specifics. According to Bloomberg data, such trade pressures have reshaped supply chains for global automakers.
Frequently Asked Questions
What drove Hyundai’s record Q3 revenue in 2024?
Hyundai’s revenue climbed to ₩46.7 trillion in Q3 2024, surpassing expectations of ₩45.8 trillion, thanks to robust demand for electric and hybrid vehicles in North America and Europe. Hybrid models accounted for 20% of U.S. sales, while eco-friendly vehicles made up 49% in Europe, reflecting steady low-emission demand.
How is Hyundai responding to tariff uncertainties?
Hyundai is increasing U.S. facility investments to mitigate tariff impacts on imports, as outlined in their lowered 2025 profit outlook but raised revenue target. A recent South Korea-U.S. trade deal has resolved tariff uncertainties, per a company executive, allowing focus on hybrid expansion and Genesis luxury models.
Key Takeaways
- Tariff Pressures Persist: U.S. duties added ₩1.8 trillion in costs, highlighting trade risks for Hyundai’s operations.
- EV and Hybrid Strength: Demand in North America and Europe drove sales growth, with hybrids hitting 20% U.S. share.
- Strategic Adjustments: Plans for U.S. production of Genesis hybrids aim to counter tariffs and boost 2026 luxury sales.
Conclusion
Hyundai’s Q3 2024 earnings underscore resilience amid U.S. tariff challenges, with record revenue offsetting profit declines through electric and hybrid vehicle momentum. As the company, alongside Kia, maintains its position as the world’s third-largest automaker by sales, expanded U.S. investments signal a proactive stance. Investors should monitor trade developments for sustained growth in emerging markets and low-emission segments.
