Officials at Hyundai Motor Co. pose for a photo next to the company’s newly launched Palisade SUV at a media event in Seongnam, south of Seoul, on Jan. 14, 2025. (Image courtesy of Yonhap)
SEOUL, Jan. 23 (Korea Bizwire) — Hyundai Motor weathered a challenging year in 2024, achieving annual revenue of 175.2 trillion won ($125 billion) and operating profit of 14.2 trillion won ($10.1 billion).
While these figures represent a 5.9% decline in operating profit compared to the previous year’s record-setting performance, analysts praised the company for mitigating downward pressure amid global economic uncertainties and a temporary slowdown in electric vehicle (EV) demand.
The automaker’s success was driven by its strategic focus on high-value models, including SUVs, hybrid electric vehicles (HEVs), and its luxury Genesis brand, particularly in the critical U.S. market.
This image provided by Hyundai Motor Group on Jan. 17, 2025, shows products that received accolades at the 2024 Good Design Awards in the United States for their innovative design competitiveness. (Image courtesy of Yonhap)
Strong U.S. Sales and Premium Segment Growth
Hyundai sold 911,805 units in the United States in 2024, a 4.8% increase year-over-year. Genesis sales rose by 8.4%, reaching 75,003 units, while the Palisade SUV saw sales jump by 23% to a record 110,055 units.
Globally, Hyundai increased its SUV sales share from 54.5% in 2023 to 56.1% in 2024. When including Genesis SUVs, the share rises to nearly 60%.
HEVs also played a pivotal role in offsetting declining EV sales. Hyundai’s hybrid sales surged 33% to 497,000 units in 2024, while EV sales fell by 18.6% to 219,000 units. The shift boosted HEVs’ share of total sales from 8.9% in 2023 to 12.0% in 2024, reflecting growing consumer preference for hybrid options.
Hyundai’s Ioniq 9 (Image courtesy of Hyundai Motor)
Impact of Currency and Warranty Costs
Despite strong sales, Hyundai’s operating margin faced headwinds due to rising warranty provisions linked to unfavorable currency exchange rates. The company’s warranty-related costs increased by an estimated 640 billion won ($460 million) in 2024, outweighing the positive effects of a favorable exchange rate on revenue.
Cautious Outlook for 2025
Looking ahead, Hyundai anticipates a challenging global economic environment, marked by EV market stagnation and slowing demand in major markets. The company has set conservative 2025 targets, including a 3.0–4.0% revenue growth rate and an operating profit margin of 7.0–8.0%, both slightly below 2024 projections.
Hyundai plans to focus on profitability through flexible management strategies, increased hybrid production, and the expansion of North American manufacturing operations. It aims to achieve a wholesale sales target of 4.17 million units in 2025, down by 70,000 units from the previous year’s goal.
While Hyundai continues to navigate macroeconomic uncertainties, its emphasis on premium models and hybrid technology positions the company to remain competitive in the evolving automotive landscape.
Note to Editor: The exchange rate applied in this article is calculated at 1,400 won per U.S. dollar.
Ashley Song (ashley@koreabizwire.com)
