Hyundai’s profitability now ranks second globally, overtaking the Volkswagen Group.
CEO credits vertical integration and group synergy for Hyundai’s financial resilience.
Volkswagen struggles with U.S. tariffs and Porsche’s EV strategy reversal.
Hyundai has overtaken Volkswagen to become the world’s second-most profitable automaker, according to company CEO Jose Muñoz. The statement came during the global launch of Genesis’s new Magma performance sub-brand in France.
Speaking to the media, Muñoz stated that Hyundai has consistently ranked third in global sales but recently moved ahead of Volkswagen in profitability. Toyota continues to lead the industry in both profit and sales volume.
Hyundai’s rise in profitability is being credited to its vertically integrated group structure, which includes more than 50 entities. While the group owns tech-focused firms like Boston Dynamics and Supernal, Muñoz emphasized that the majority of profits still come from its core automotive business.
“Power of the Group,” as Muñoz described it, allows Hyundai to maintain tighter control over operations than most competitors. He added that although Hyundai’s profits had been “dented by tariffs,” the company experienced only a 30% decline in some metrics compared to over 70% losses reported by competitors.
Porsche Delays EV Launches, Cuts 2025 Profit Outlook; Volkswagen Takes US$6 Billion Hit
Meanwhile, the Volkswagen Group reported a €1.3 billion ($2,12 billion CDN) operating loss in the third quarter, largely due to a €4.7 billion ($7,650 billion CDN) charge linked to Porsche’s revised EV strategy. The company also faces up to €5 billion ($8,4 billion CDN) in tariff-related costs in the U.S. market. Volkswagen maintained its full-year guidance but flagged concerns over chip supply disruptions that could further impact production.
Despite these challenges, Hyundai and its affiliate Kia continue to post record revenues, aided by their ability to shift quickly between electric and hybrid models. The increased profitability is enabling Hyundai to invest in new high-performance initiatives like the Genesis Magma brand, even as some competitors reduce spending amid financial pressures.
Source: CarExpert
