Hyundai Motor has reported strong profits for the first quarter of 2025. The South Korean automaker earned 3.6 trillion won, which is around 2.5 billion US dollars. This is higher than what experts expected. The result was helped by strong sales in the United States and high demand for hybrid and electric cars. A weaker Korean currency also boosted profits from overseas markets.
Revenue Climbs 9.2 Percent from Last Year
Hyundai’s revenue reached 44.4 trillion won in the first quarter. This is a 9.2 percent increase compared to the same time last year. The company achieved this growth even though global car sales are slowing down.
The number of cars Hyundai delivered was slightly over 1 million. This is a small drop of 0.6 percent compared to last year. But sales in North America rose by 2.4 percent. Hybrid and electric vehicle sales rose by around 39 percent compared to the first quarter of last year.
Hybrid and Electric Vehicles Drive Growth
Hyundai has been focusing more on hybrid and electric cars. This strategy is showing good results. Even though total car sales fell slightly, profits went up.
The company continues to invest in clean energy vehicles. These models are becoming more popular with buyers around the world. Many people want fuel-efficient and eco-friendly cars. Hyundai is working to meet that demand.
Strong Performance in the United States
North America played a big role in Hyundai’s success. The company saw more car sales in the United States than last year. This helped offset weaker results in other markets.
To keep growing in the US, Hyundai announced a big investment plan. In March, the company said it will invest 21 billion dollars in the US by 2028. This plan includes spending 9 billion dollars to increase factory output to 1.2 million cars each year. The project will also create about 14,000 new jobs.
Hyundai Moves Production to Avoid Tariffs
Because of trade issues, Hyundai is changing where it makes cars. The company wants to avoid high import taxes in the US. For example, it has started making more Tucson models in Alabama. These cars were previously made in Mexico. At the same time, cars for Canada are now being made in Mexico instead of the US.
Hyundai is also looking at other ways to change production. The company wants to reduce the risk from trade rules and tariffs. These changes will help Hyundai sell more cars without paying extra costs.
US Factory Expansion Supports Future Growth
Hyundai is also growing its factory in Georgia. This plant is slowly increasing how many cars it can build. The new capacity will help the company avoid trade problems. It will also make it easier to deliver cars faster to customers in the US.
By making more cars locally, Hyundai can keep prices lower. It can also respond faster to what US buyers want. This gives the company an advantage over some of its rivals.
Challenges Remain in Europe
While the US market is strong, Hyundai still faces problems in Europe. Some people are not yet ready to switch to electric vehicles. Also, consumer confidence is low in some parts of Europe. This is making it harder for carmakers to sell new vehicles.
Even with these issues, Hyundai plans to invest more this year. The company has set a target of 16.9 trillion won for 2025. This is higher than the 14.6 trillion won it invested in 2024. Hyundai is still aiming for a profit margin of 7 to 8 percent for the full year.
Stock Price Dips Slightly After Results
Even though profits were strong, Hyundai’s stock price dropped by 0.5 percent after the news. Experts say this may be due to global concerns. Investors are still worried about trade risks and slower growth in some markets.
Still, the company’s long-term plan looks solid. It is investing in the right places and responding quickly to global changes.
