Hyundai Motor Reports 11% Drop in Net Profit for Second Quarter of 2026
South Korean automaker Hyundai Motor Company reported a year-on-year decline of 11% in net profit to KRW 2.888 trillion (US$1.97 billion) during the second quarter of 2026, primarily due to increased raw material and energy costs linked to the Middle East conflict. A fire at a key engine parts supplier earlier that year also disrupted domestic production. Operating income fell by 21% to KRW 2.851 trillion. Despite lower net profit, global revenues rose slightly by 1.9% to KRW 49.215 trillion (US$33.5 billion), driven by an improved product mix and favorable exchange rates. However, overall vehicle sales dropped by 7%, with electrified vehicles showing a modest increase of 2%. Battery electric vehicle (BEV) deliveries fell sharply by 13% to 69,000 units. Hyundai maintained its full-year financial guidance, citing new model launches in the second half as expected contributors to recovery. These include updated models like the Grandeur and Elantra, along with a new entry-level BEV, Ioniq 3.
Topics: automotive operating income profit decline revenue growth