Modern car Q4 profit decreased by 17% year-on-year, falling short of expectations, halving the annual revenue guidance.

Hyundai Motor, the Korean carmaker, announced that its fourth-quarter profit was lower than analysts' expectations and warned that growth in the coming year might slow down. The data shows that the company's operating profit for October-December was 2.8 trillion Korean won (1.95 billion US dollars), down 17% compared to the same period last year, which was 3.4 trillion Korean won, falling below analysts' average expectation of 3.2 trillion Korean won. However, sales revenue increased by 12%, leading to a record high annual revenue. Global retail sales for Hyundai Motor in the fourth quarter declined as strong sales in the US and Indian markets were offset by weak demand in the Korean, European, and Chinese markets. In terms of sales volume, Hyundai Motor and its subsidiary Kia Motors are the third-largest automaker in the world. Analysts stated that the softening of the Korean won against the US dollar could increase Hyundai Motor's domestic earnings but also increase foreign debt and related financial costs, putting pressure on profits. Looking ahead, due to weak car demand and intensifying competition, Hyundai Motor expects its sales growth to halve by 2025. The company forecasts a revenue growth of 3.0% to 4.0% in 2025, compared to 7.7% in the previous year. The operating profit margin is estimated to decrease from 8.1% in 2024 to 7.0% to 8.0%. The company plans to invest a total of 169 trillion Korean won this year, higher than the 124 trillion Korean won in 2024. Hyundai Motor stated, "The uncertainty in business this year is increasing." Slowdowns in key markets, a slowdown in demand for electric cars, and macroeconomic fluctuations are all contributing factors. Currently, global automakers are preparing for policy uncertainties in the US, the world's second-largest automotive market, which could dampen demand. US President Trump announced this week that he might impose a 25% import tariff on Canada and Mexico starting from February 1st. Trump also mentioned that he will consider canceling tax credits for purchasing electric vehicles. North America and Korea are the two largest markets for Hyundai and Kia Motors. Aside from the US, Hyundai Motor also faces potential obstacles from Europe, where stagnant car sales are attributed to persistent inflation, higher borrowing costs, and weak demand for electric vehicles.