What's Happening?
Hyundai Motor Company reported record revenues of KRW46.7 trillion in Q3 2025, marking an almost 9% increase year-on-year. However, the company struggled to convert this revenue growth into significant
profits due to the impact of high U.S. tariffs. While favorable foreign exchange rates helped mitigate similar challenges in Q2, no such relief was available in the third quarter. This situation highlights the ongoing challenges faced by Hyundai and other automakers in navigating international trade policies and their financial implications.
Why It's Important?
The impact of tariffs on Hyundai's profitability underscores the broader challenges faced by global automakers in the current trade environment. High tariffs can significantly affect the bottom line, influencing strategic decisions such as pricing, production, and market focus. For Hyundai, this situation may necessitate a reevaluation of its supply chain and market strategies to mitigate the financial impact of tariffs. The issue also highlights the importance of trade negotiations and policies in shaping the economic landscape for multinational corporations.
