In its earnings report released Thursday, Hyundai Motor Group reported Q2 revenue of $35.2 billion — the highest quarterly revenue in the company’s history and a 7.3% year-over-year increase. The previous record was set in Q1, when revenue reached $32.3 billion.
Despite the record revenue, the company reported a 22.1% year-over-year drop in net profit — down to $2.36 billion compared to $3 billion in the same period last year.
Operating profit also declined — from 8.2% in Q1 to 7.5% in Q2. Hyundai attributed this to increased spending on buyer incentives due to growing competition, as well as the impact of tariffs and a volatile global trade climate.
In Q2, the company sold 1,043,000 vehicles in the retail segment globally — a modest increase of 0.9%. Revenue from the core automotive business rose 5.1% year-over-year to $26.9 billion, also marking a quarterly record.
Hyundai attributed sales growth in part to strong demand in North America, where U.S. sales rose by 10.3% to 256,000 units. SUVs and crossovers made up 75% of the company’s wholesale sales in the U.S.
Sales of Hyundai’s electrified models rose 36.4% year-over-year in Q2 to 262,126 vehicles. The company noted strong demand for hybrid models in global markets and rising EV sales in Europe.
Key growth drivers included the Santa Fe HEV, Tucson Hybrid, and Santa Fe PHEV. Hyundai is also betting on the new three-row electric SUV, the IONIQ 9, to further boost sales in the segment.
However, due to slowing EV adoption in North America — particularly the loss of federal tax credits for EVs after September 30 — Hyundai plans to focus on expanding its hybrid offerings. This strategy was announced last year.
In April, the automaker unveiled a next-generation hybrid system, which Hyundai claims delivers 19% more power and 45% better fuel efficiency compared to similar internal combustion engines.