On July 23, Hyundai Motor reported second-quarter profits that fell short of analyst expectations, largely due to a decline in global retail sales, policy uncertainty in the United States, and intensified market competition that has dampened demand. The company revealed on Thursday that its operating profit for the three months ending June 30 reached KRW 2.85 trillion (approximately USD 1.9 billion), marking a nearly 21% year-on-year decrease and falling below analysts' projections of KRW 3.1 trillion. Meanwhile, revenue increased by about 2% year-on-year, setting a quarterly record at KRW 49.2 trillion.

These results underscore the challenges automakers like Hyundai face in navigating an uncertain business landscape. Despite experiencing sales growth in North America, the cancellation of U.S. support measures for electric vehicles has cast doubt on the long-term outlook for both Hyundai and its subsidiary, Kia. Tariff-related issues continue to pose obstacles, with Hyundai gradually losing ground to Chinese automakers in both European and Asian markets. Furthermore, the company’s wage negotiations with unions have reached an impasse, leading to partial strikes that have resulted in losses amounting to millions of dollars per hour.