The operating profit of Hyundai Motor Group’s 11 listed companies in the third quarter of this year increased by more than double compared to the same period last year.
According to the Financial Supervisory Service’s electronic disclosure system on Nov. 1, the 11 listed companies within Hyundai Motor Group that have disclosed their third-quarter results reported a total revenue of 104.45 trillion won (US$76.94 billion) and an operating profit of 8.36 trillion won. Compared to the same period last year, the revenue increased by 7.6 percent, marking a record high for the third quarter. The operating profit saw a significant surge of 108.9 percent, also setting a new third-quarter record. Cumulative operating profit for the first three quarters of this year reached 25.79 trillion won, surpassing last year’s annual record of 23.57 trillion won.
Hyundai Motor and Kia Motors played a leading role in achieving the record-high third-quarter results. Their combined sales accounted for more than half of the total revenue at 63.7 percent, and they contributed significantly with an 80 percent share of the operating profit. Despite challenges such as the shortage of automotive semiconductors, their strategy of focusing on high-value vehicle segments like premium cars and sports utility vehicles (SUVs) and aiming for profitability has proven to be effective.
Hyundai Group’s subsidiary companies in construction, defense, parts, and logistics have been achieving a series of successful overseas orders in the trillion-won range. Hyundai E&C and Hyundai Engineering secured a contract worth 3.1 trillion won for the “Saudi Jafurah Gas Processing Facility Project Phase 2” from Saudi Arabia’s state-owned oil company, Aramco, in October. Meanwhile, Hyundai Rotem, following a deal last year to export 180 units of the “K-2 tank” to Poland, is currently negotiating to export an additional 820 units.
Hyundai Mobis has also been making progress. By the third quarter, its core component orders for major global automakers like Volkswagen amounted to US$8.57 billion. This achievement surpasses its annual overseas order target of US$5.36 billion by more than 60 percent. Hyundai Wia has signed contracts for constant-velocity joints with major global manufacturers, totaling over 1 trillion won. Hyundai Transys is supplying transmissions to Stellantis with a contract worth 700 billion won.
Hyundai Steel is also supplying automotive steel sheets to Stellantis, Ford, and Volkswagen, among others. Hyundai Glovis has signed a long-term, five-year contract worth 500 billion won with Volkswagen for finished vehicle transportation. The strategy of Chairman Chung, emphasizing continuous structural improvements, business portfolio optimization, and fostering a proactive corporate culture since taking office, has been effective.