Hyundai Cuts 2026 Sales Target to 4 Million Vehicles, Lowers Profit Margin Goal
Key Facts
Hyundai Motor cut its annual wholesale sales target for 2026 to 4 million units from 4.16 million and narrowed its target operating profit margin range to 5.5%–6.5% from 6.3%–7.3%. The company kept its consolidated revenue growth target at 1.0%–2.0%, according to its earnings statement. The revision reflects weaker global demand, production disruptions and higher raw material prices, as third-quarter sales fell. The company said lower production volumes increased the burden of fixed costs. The changes put its annual targets at lower levels, while its revenue growth target remains unchanged.
Global wholesale sales totaled 920,710 units in the third quarter, down 11.3% year on year. Sales in South Korea fell 27.2% to 131,468 units, affected by strikes that weighed on domestic production. Outside South Korea, sales declined 8% to 789,242 units. A Hyundai finance official said production disruptions at domestic plants in the second and third quarters reduced sales at home and shipments to major overseas markets. In the first nine months of the year, global sales totaled 2,879,590 units, down 5.1% from the same period in 2025.
Sharp production losses caused by a prolonged strike in South Korea weighed on sales, alongside supply chain constraints linked to the ongoing conflict in the Middle East, the company said. Strong demand for hybrid vehicles, particularly in North America, helped support sales. Hybrid vehicle sales totaled 167,414 units in the third quarter, up 3.8% year on year. Hybrids accounted for 18.2% of sales, up 2.7 percentage points from a year earlier. Hyundai said the shift supported an improved sales mix, while production and supply conditions limited the impact of demand on total shipments.
Quarterly revenue fell 3.4% year on year to 45.11 trillion won, while net profit, including non-controlling interests, declined 24.2% to 1.93 trillion won. Operating profit moved in the opposite direction, rising 5.5% to 2.68 trillion won, with an operating margin of 5.9%. The company attributed the performance to favorable exchange rates, cost improvements and a better product mix as hybrid vehicle sales increased. The results show a divergence between growth in operating profit and declines in net profit and revenue. The quarterly margin of 5.9% is also within the revised annual target range.
Hyundai cut its 2026 automotive investment plan to 16 trillion won from 17.8 trillion won after reviewing investment priorities and execution timelines. As part of its operating plan, the company said it would increase production and expand sales of new models, including the Tucson and Elantra, while continuing to improve its cost structure. This follows production disruptions at Korean plants that affected domestic sales and shipments to major markets. The company said it aims to recover sales volume in the fourth quarter by normalizing production and beginning a full expansion of sales of key new models. These steps form the core of its response to pressure from production losses and weaker demand.
The electric vehicle service network stands out as part of the competitive landscape in the South Korean market: the Korea Herald reported that Hyundai operates more than 1,000 service locations nationwide, compared with about 17 for Tesla. A company finance official pointed to a focus on competitive financing options, according to the newspaper. The comparison comes as the company continues to bolster production and sales of new models and improve costs, after cutting its annual sales target and automotive investment plan. The financial statement does not provide a new estimate for when production losses will be fully recovered, but identifies production normalization and new model launches as two paths for the fourth quarter. The outcome will depend on the company’s ability to recover shipments in the remaining part of the year.