Hyundai Motor reported better-than-expected earnings for the first quarter, benefiting from a surge in car purchases ahead of looming U.S. import tariffs. The South Korean automaker saw its operating profit rise by 2% to 3.63 trillion won ($2.5 billion) for the period ending March 31, surpassing analysts’ expectations of 3.55 trillion won.
Revenue also climbed by 9.2%, reaching 44.4 trillion won. As the world’s third-largest automaker by volume, Hyundai, along with its affiliate Kia Motors, took advantage of a weaker Korean won, which boosted earnings from its overseas sales.
However, the company faces ongoing risks due to U.S. President Donald Trump’s 25% tariff on foreign car imports. Despite these challenges, Hyundai managed to benefit in the first quarter as many customers brought forward their purchases to avoid the tariffs.
In response to the tariffs, Hyundai announced plans for a $21 billion expansion in the U.S. aimed at mitigating the impact of these duties on its business.
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