How Did Hyundai Motor Group Surpass Volkswagen in H1 Operating Profit?
Click to start listening
Synopsis
Hyundai Motor Group has outperformed Volkswagen Group in operating profit for the first half of 2023, marking a significant milestone. This achievement showcases Hyundai's resilience amid market challenges while also highlighting its strategic adaptability. With a focus on innovation, the company is set to enhance its global standing even further.
Key Takeaways
- Hyundai Motor Group is now second globally in operating profit.
- Operating profit totaled 13.01 trillion won for H1 2023.
- Volkswagen Group reported an operating profit of 6.7 billion euros.
- Hyundai has adapted swiftly to market challenges.
- Trams delivered to Edmonton are designed for extreme temperatures.
Seoul, Aug 10 (NationPress) In an impressive turn of events, South Korea's Hyundai Motor Group has claimed the second position globally in operating profit for the first half of this year, outpacing Germany's Volkswagen Group, according to industry data released on Sunday.
The cumulative operating profit for Hyundai Motor Co. and Kia Corp. reached an astonishing 13.01 trillion won (approximately US$9.35 billion) for the period spanning January to June, as reported by Yonhap news agency.
In contrast, the Volkswagen Group, which holds the title of the world’s second-largest automaker by sales volume, reported an operating profit of 6.7 billion euros (around 10.86 trillion won) during the same timeframe.
This marks the inaugural instance where Hyundai Motor Group outperformed Volkswagen Group in operating profit on a half-year basis.
Currently positioned third globally in sales volume, Hyundai is thought to have closed the gap with Volkswagen by swiftly adapting to market disruptions caused by U.S. tariff measures, including effective inventory adjustments and production management.
An industry official noted, "Despite a decline of over 10 percent in Hyundai Motor Group's first-half operating profit, the performance remains commendable compared to rivals like Toyota Group, which incurred over 4 trillion won in tariff-related costs." Toyota Group continues to lead globally in both sales and operating profit.
On another front, Hyundai Rotem, the rolling stock division of South Korea’s Hyundai Motor Group, announced the delivery of the initial batch of trams to Edmonton, Canada, as part of a supply deal inked in 2021.
This first batch is part of a contract worth 218.8 billion won (around US$157.3 million) to supply trams for Edmonton's Valley Line West light rail project. The delivered trams will undergo approximately 2,000 kilometers of trial runs before commencing official service.
Hyundai Rotem aims to deliver all units under the contract progressively through 2027.
The trams are outfitted with advanced temperature control systems designed to sustain comfortable interior conditions even in extreme temperatures as low as -40 degrees Celsius.
Point of View
Hyundai Motor Group's achievement in surpassing Volkswagen in operating profit underscores the company's strategic foresight and adaptability. This success story not only reflects Hyundai's robust business model but also sets a benchmark for other Korean companies in navigating global market challenges.
NationPress
06/10/2025
Frequently Asked Questions
What was Hyundai Motor Group's operating profit for H1 2023?
Hyundai Motor Group reported an operating profit of 13.01 trillion won (approximately US$9.35 billion) for the first half of 2023.
How does Hyundai's profit compare to Volkswagen's?
Volkswagen Group recorded an operating profit of 6.7 billion euros (around 10.86 trillion won) during the same period, which means Hyundai outperformed Volkswagen.
What factors contributed to Hyundai's success?
Hyundai's swift response to market disruptions and effective inventory adjustments in light of U.S. tariff measures significantly contributed to its success.
What is the status of Hyundai Rotem's tram deliveries?
Hyundai Rotem has commenced the delivery of trams to Edmonton, Canada, as part of a contract signed in 2021, with plans to deliver all units through 2027.
What technology is used in the trams delivered by Hyundai Rotem?
The trams are equipped with advanced temperature control systems to maintain comfortable interior conditions even in extreme cold, down to -40 degrees Celsius.
