Hyundai, Kia poised to report slowing operating profit in Q1

Hyundai and Kia are expected to report a slowdown in their operating profits for the first quarter of 2025. Both South Korean automakers are facing challenges that have impacted their earnings during this period.

The main reason for the slower profits is the rising cost of raw materials, which has made production more expensive. Additionally, the global shortage of semiconductors, which has affected many industries, continues to create supply chain problems. These issues have made it harder for both Hyundai and Kia to meet the high demand for their vehicles.

Both companies have been working hard to adapt to these challenges. They have been looking for ways to reduce costs and improve production efficiency. However, the increase in material costs and supply chain disruptions have made it difficult for them to maintain the high-profit growth they had in previous years.

Hyundai and Kia have also faced strong competition from other automakers, especially in the electric vehicle (EV) market. While both companies have made progress in developing electric cars, they are not yet able to match the growth of leading EV manufacturers. This has affected their market share in certain regions, slowing down their overall growth.

Despite these challenges, both companies remain optimistic about the future. They are continuing to invest in new technologies, including electric and autonomous vehicles, which they hope will drive future growth. Hyundai and Kia are also expanding into new markets and focusing on improving their global presence.

Experts believe that while the first quarter results may show slower profits, the long-term outlook for Hyundai and Kia remains positive. As they continue to adapt to changing market conditions and focus on innovation, they are expected to recover and return to stronger profit growth in the coming quarters.