Hyundai Cuts 2026 Sales Target to 4 Million Vehicles, Operating Margin to 5.5–6.5%
Key Facts
Hyundai Motor cut its 2026 wholesale sales target to 4 million units from 4.16 million previously, and lowered its target consolidated operating profit margin range to 5.5–6.5% from 6.3–7.3%, according to a company statement. It kept its consolidated revenue growth target at 1–2%, unchanged from the previously announced level. Hyundai attributed the outlook revision to weak demand across the global industry, production disruptions and higher raw material prices. The company said the lower operating margin target also reflects higher fixed costs as production falls and raw material prices rise. The revision to both targets follows the company’s decision to maintain its original annual outlook in its second-quarter results.
For July–September, net profit, including non-controlling interests, fell 24.2% year on year to 1.93 trillion won, according to the results statement. Operating profit moved in the opposite direction, rising 5.5% to 2.68 trillion won. The operating profit margin increased 0.5 percentage point from a year earlier to 5.9%. Revenue fell 3.4% to 45.11 trillion won during the quarter. The figures show a contrast between declines in net profit and revenue on one hand, and increases in operating profit and its margin on the other.
Global wholesale sales fell 11.3% year on year to 920,710 vehicles in the third quarter, Hyundai said. In the first nine months of 2026, sales declined 5% compared with the same period in 2025. The company linked the decline to significant production losses caused by a prolonged strike in Korea and supply chain constraints related to the conflict in the Middle East. It added that intensifying competition in Europe and South America also affected sales during the period. Supplier operating disruptions, higher raw material costs and global competitive pressures had weighed on profitability in the second quarter, when the company maintained its original annual guidance.
Although total global retail sales fell to 931,211 vehicles in the third quarter, sales rose in North America and India, according to company data. Hyundai sales in North America reached 325,098 vehicles, up 3.2% year on year. The company said demand for hybrid vehicles was strong in the region. In India, sales rose 9.5% to 150,039 vehicles. Explaining the increase in operating profit, Hyundai said favorable exchange rates, cost improvements and a better product mix, driven by hybrid vehicle sales, supported the result.
The company cut its investment plan for the automotive sector to 16 trillion won from 17.8 trillion, after reviewing investment priorities and implementation timing, according to its statement. It also kept its quarterly dividend at 2,500 won per common share, saying the decision reflected its commitment to shareholder value. The move is part of an annual outlook update that lowered the sales target and operating margin while leaving the revenue growth target unchanged. The company’s previous 2026 targets included wholesale sales of 4.16 million units and an operating margin of 6.3% to 7.3%. They also included a consolidated revenue growth target of 1% to 2%.
Hyundai said it aims to support a fourth-quarter recovery by increasing production and expanding sales of new models, including the Tucson and Elantra. It added that it will continue to improve its cost structure. This puts production recovery and expanded sales of new models among the company’s plans for the rest of the year. The company had attributed production losses in the first nine months to the prolonged strike in Korea, along with supply constraints and competition in some markets. Hyundai did not change its 2026 consolidated revenue growth target, but at the same time lowered its wholesale sales target and operating profit margin range.