Hyundai Motor reports 5.5% rise in Q3 operating profit, beats forecasts

[SEOUL] Hyundai Motor reported a 5.5 per cent rise in third-quarter operating profit on Thursday (Oct 29), as favourable foreign exchange rates helped offset the impact of partial strikes and weaker sales of ageing models.

Hyundai, which together with affiliate Kia Corp forms the world’s third-biggest automaking group by sales, posted an operating profit of 2.7 trillion won (US$2.01 billion) for the July to September period, compared with 2.5 trillion won a year earlier.

That compared with a 2.4 trillion won forecast by LSEG SmartEstimate, which is weighted towards analysts who are more consistently accurate.

The automaker also lowered its 2026 operating profit margin target to 5.5 to 6.5 per cent from 6.3 to 7.3 per cent previously, while cutting its annual vehicle sales target to four million units from 4.16 million.

It also revised down its capital expenditure plan for the year to 16 trillion won from 17.8 trillion won previously.

Revenue fell 3.4 per cent from a year earlier to 45.1 trillion won.

Analysts said Hyundai faced increasing competition from Chinese electric vehicle makers in South Korea and Europe, with a limited line-up of affordable EV models adding to its challenges.

The downward revision comes after Hyundai Motor kept its annual guidance unchanged in July, saying it expected growth in the second half as it planned to boost production and launch new models following disruptions caused by a fire at a supplier.

Competition in South Korea’s imported car market has intensified, with China’s BYD ranking as the third-largest foreign brand behind Tesla and BMW.

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Hyundai Motor’s US unit said earlier in October it was recalling 94,622 vehicles in the US over a potential fire risk from front power-seat motors that could overheat while vehicles were parked or being driven.

US automaker General Motors also narrowed its 2026 adjusted earnings forecast earlier in October, with the midpoint of its revised earnings per share outlook falling below Wall Street estimates, as it warned of rising commodity costs and lower truck deliveries. REUTERS