Hyundai, Kia's 2025 operating profit likely to drop despite record sales due to U.S. tariffs
Published: 26 Jan. 2026, 12:38
Updated: 26 Jan. 2026, 14:35
![This photo, provided by Hyundai Motor Group, shows the company's headquarters in southern Seoul. [YONHAP]](https://koreajoongangdaily.joins.com/data/photo/2026/01/26/df1b683f-cd7e-44b9-8428-f129b05b4709.jpg)
This photo, provided by Hyundai Motor Group, shows the company's headquarters in southern Seoul. [YONHAP]
Korea's leading automakers, Hyundai Motor and Kia, are expected to post record revenues in 2025 on robust sales in the United States, though their combined operating profit is forecast to decline due to the impact of U.S. tariffs, data showed Monday.
Hyundai Motor's annual sales and operating profit are projected to reach 187.9 trillion won ($129.1 billion) and 12.5 trillion won, respectively, for 2025, up 7.2 percent and down 12.3 percent from a year earlier, according to an analysis of reports released by securities firms.
Its affiliate Kia is expected to post a 7.2 percent on year increase in annual sales to 115 trillion won, while operating profit is forecast to fall 28 percent to 9.1 trillion won.
Their combined annual sales and operating profit are predicted to reach 302.9 trillion won and 21.6 trillion won, respectively.
The sales figure would mark an all-time high, surpassing the 300 trillion-won threshold for the first time on the back of strong U.S. demand. The estimated operating profit, however, is significantly lower than an earlier forecast of 30 trillion won.
Under U.S. President Donald Trump's tariff policies, Korean-made vehicles had been subject to 25 percent tariffs for several months until the Korean government reached a trade deal with Washington to lower the duty to 15 percent starting in November.
Analysts expect Hyundai and Kia to rebound in 2026, supported by eased tariff burdens and increased shipments of hybrid models.
"A recovery in performance is expected in 2026 due to an improved product mix driven by hybrid-focused new vehicle launches, the effect of reduced U.S. tariffs and compensation for parts tariffs," said Lim Eun-young, an analyst at Samsung Securities.
Hyundai Motor and Kia are scheduled to release their earnings reports Thursday and Wednesday, respectively.
Yonhap
with the Korea JoongAng Daily
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