South Korean Media: Hyundai Motor Surpasses Volkswagen, First-Time Ranking Second Globally in Profit!
On April 14, South Korea's JoongAng Ilbo published an article stating that the Hyundai Motor Group surpassed Germany's Volkswagen Group for the first time last year, securing the second position in global automotive operating profit. The Hyundai Motor Group achieved sales of 30.3954 trillion KRW and an operating profit of 2.0546 trillion KRW, ranking second globally among automakers—only behind Japan's Toyota Motor Group.
Volkswagen Group dropped to third place, overtaken by Hyundai. During the same period, Volkswagen reported sales of 32.19 billion EUR, higher than Hyundai’s, but its operating profit was just 8.9 billion EUR. This marks the first time that the Hyundai Motor Group has surpassed Volkswagen Group in annual operating profit.
The advantage in profitability metrics is even more pronounced. With an operating profit margin of 6.8%, the Hyundai Motor Group leads the industry, second only to Toyota (8.6%). This figure is more than double that of Volkswagen Group (2.8%), indicating a significant gap in profitability compared to its competitors.
From the perspective of global automotive market trends, the Toyota Motor Group maintained its top position with sales of 5.04508 trillion JPY and an operating profit of 431.28 billion JPY. General Motors recorded sales of $18.5 billion and adjusted operating profit of $12.7 billion, while Stellantis reported a loss of 840 million EUR.
The sustained strong profitability of the Hyundai Motor Group stems from its proactive response to U.S. tariff risks. According to assessments, the company minimized the impact of tariffs through strategies such as increasing local production, adjusting manufacturing plans, and clearing inventory.
Comparison with competitors’ performance confirms this. Due to U.S. tariffs and weak sales in the Chinese market, Volkswagen Group’s operating profit plummeted by 53.5% year-on-year. In contrast, despite U.S. auto tariffs being reduced to 15%, the tariff burden borne by Hyundai Motor Group remained lower than that of the Toyota Group.
In fact, the total tariff cost for the Hyundai Motor Group amounted to 7.2 trillion KRW, whereas the Toyota Group faced 1.2 trillion JPY. Fundamentally, Hyundai Motor Group effectively mitigated tariff risks through smart adjustments to its production and sales strategies, thus safeguarding its profitability.
Notably, although the Hyundai Motor Group has now surpassed Volkswagen in global operating profit, its sales volume still ranks third. Last year, the Hyundai Motor Group sold 7.27 million vehicles worldwide, placing it third—behind Toyota Group (11.32 million) and Volkswagen Group (8.98 million). General Motors (6.18 million) and Stellantis (5.48 million) ranked fourth and fifth, respectively.
The divergence between sales volume and operating profit highlights the success of the Hyundai Motor Group’s “profitability management” strategy. This performance reflects a strategic shift from merely chasing sales volume toward prioritizing profitability.
Volkswagen Group attributes its declining operating profit primarily to U.S. tariffs, increased costs from Porsche’s product strategy adjustments, exchange rate fluctuations, and impacts from pricing and product mix. In contrast, the Hyundai Motor Group managed to remain profitable even under similar adverse conditions.
Whether last year’s results were a fleeting phenomenon or a sign of enhanced long-term competitiveness remains to be seen—future profit trends will provide the answer.
Original source: toutiao.com/article/1862408933377034/
Disclaimer: The views expressed in this article are solely those of the author.