Windhoek: South Korea's largest automaker, Hyundai Motor, reported a significant drop in its third-quarter operating profit, attributed to the adverse effects of the U.S. tariff imposition, according to the company on Thursday. Hyundai's operating profit fell by 29.2 percent year-over-year, reaching 2.54 trillion won (approximately 1.8 billion U.S. dollars) during the July-September period.

According to Namibia Press Agency, despite the decline in operating profit, Hyundai experienced an 8.8 percent increase in revenue, which rose to 46.72 trillion won (32.7 billion dollars). However, the net income saw a decrease of 20.5 percent, falling to 2.55 trillion won (1.8 billion dollars). The company cited strong sales in the United States and Europe, as well as favorable foreign exchange rates, as contributing factors to the record third-quarter revenue. Nonetheless, increased incentives and the impact of tariffs beginning to take full effect negatively impacted the operating profit.

Hyundai's global sales reached 1,038,353 units in the third quarter, marking a 2.6 percent increase compared to the same period last year. Domestic automotive sales rose by 6.3 percent, totaling 180,558 units, while sales outside South Korea increased by 1.9 percent to 857,795 units. The company also noted a 25 percent surge in global sales of electrified models, including hybrids, plug-in hybrids, battery electric vehicles, and fuel cell electric vehicles, with a total of 252,343 units sold in the reported quarter.