Weaker Korean Domestic Sales, US EV Subsidy Expiry, Production Disruptions And Rising Costs Drive Hyundai’s Second Consecutive Quarterly Profit Decline In 2026
According to Reuters, Hyundai Motor posted Q2 2026 operating profit of 2.9 trillion won ($1.98 billion), a 21 percent drop from 3.6 trillion won a year earlier, missing the LSEG SmartEstimate forecast of 3.2 trillion won.
Revenue rose 2 percent to 49.2 trillion won, but the improvement masked serious structural pressure. South Korean domestic vehicle sales plunged 16 percent in the quarter, while US electric vehicle sales collapsed from a 10.2 percent share to just 4.0 percent following the expiry of federal EV subsidies. Production was further hit by a fire at a key supplier during the quarter.
The result reflects a global auto industry absorbing simultaneous shocks; US tariffs, Middle East conflict disrupting supply chains, high energy costs compressing consumer demand, and the removal of EV incentives reversing EV adoption progress at exactly the wrong moment.
Hyundai’s Q1 2026 had already seen operating profit fall 30.8 percent. Back-to-back quarterly declines from the world’s third-largest automaker signal the pressure is structural, not temporary.
Hyundai is still investing aggressively in robotics, software-defined vehicles, and autonomous driving. The future is funded. The present is being squeezed.
Check out our previous coverage of the automotive industry on The Trusted Times.
