US Tariffs and Slowing EV Transition Weigh on Hyundai's Earnings, Missing Expectations

Seoul | EcoPulse24

Hyundai Motor's quarterly results came in below market estimates as US tariffs and weakening momentum in the shift toward electric vehicles in key markets continued to impact South Korea's largest automaker during the fourth quarter.

Operating profit stood at 1.7 trillion won for the three months ending December 31, down about 40% year-on-year and below the average analyst estimate of 2.7 trillion won. In contrast, revenue increased by 0.5% to 46.8 trillion won, marking a record high for fourth-quarter revenue.

These results come as Korea's automotive sector faces mounting external challenges, with the slowdown in EV adoption in the US and Europe and tighter US trade policy. Hyundai and its affiliate Kia have been among the most affected by tariffs, especially after US statements about plans to raise tariffs on cars again to 25% amid ongoing trade disputes.

In the market, Hyundai Motor's stock pared gains after the earnings announcement, though it remained up for the year on optimism over the company's expansion into robotics. Hyundai Motor shares traded at 527,000 won, while Kia shares traded at 155,600 won. Hyundai Motor's stock showed a 6.79% change, and Kia's stock a 3.18% change, according to available data. Current data does not include trading volumes or market capitalization.

EcoPulse24 Analysis:
These results reflect a more complex operating environment for Korean automakers, where trade pressures intersect with slowing EV demand outside Asia. Sustained margins appear increasingly dependent on US trade policy developments and companies' ability to redirect investments into higher value-added areas such as robotics and advanced technologies to offset weakness in traditional markets.