On July 31, the day the U.S.-South Korea trade negotiations were concluded, finished vehicles were waiting in the yard next to the export shipment dock at Hyundai Motor’s Ulsan plant. (Yonhap)
SEOUL, Aug. 10 (Korea Bizwire) — Hyundai Motor Group has emerged as the world’s second-most profitable automaker in the first half of 2025, surpassing Germany’s Volkswagen Group, despite facing challenges like U.S. tariffs and global supply chain disruptions.
According to the Korea Automotive Research Institute’s analysis, Hyundai sold 3.65 million vehicles globally in the first half of 2025, maintaining its position as the third-largest automaker by sales, behind Toyota (5.16 million units) and Volkswagen (4.36 million units).
However, Hyundai excelled in profitability, securing the second spot with an operating profit of 13.1 trillion KRW, surpassing Volkswagen’s operating profit of 6.7 billion euros (10.86 trillion KRW).
Toyota, the world’s largest automaker by sales, reported the highest operating profit of 2.28 trillion yen (21.48 trillion KRW), maintaining a solid lead in profitability with a margin of 9.2%.
Hyundai’s operating profit margin was 8.7%, outperforming Volkswagen’s 4.2%. Hyundai’s success is attributed to swift responses to challenges, such as inventory management and production adjustments, which helped mitigate the impact of U.S. tariffs on global automakers.
Genesis vehicles are displayed at the Los Angeles Auto Show on Nov. 21, 2024, in this photo provided by Hyundai Motor Group. (Image courtesy of Yonhap)
While the U.S. tariff reduction fell short of its initial target of 12.5%, Hyundai managed to mitigate the financial burden more effectively than competitors like Toyota, which faced a hefty 4 trillion KRW cost due to U.S. tariffs in Q2. Hyundai’s 1.5 trillion KRW tariff expense was seen as relatively manageable, allowing the company to maintain profitability.
Despite a 10% decline in operating profit compared to the previous year, Hyundai’s performance has been viewed positively.
aAnalysts believe that the company’s ability to navigate global challenges positions it to potentially surpass Volkswagen in profitability by the end of 2025, especially with its strong market position in regions like China and its growing electric vehicle portfolio.
Hyundai’s resilience in the face of adversity, coupled with its efficient operations, has bolstered its position as one of the world’s most profitable automakers, with further growth opportunities on the horizon.
Kevin Lee (kevinlee@koreabizwire.com)
