South Korean car maker Hyundai Motor has been facing problems because of higher tariffs on cars sold in the United States, but it still earned good revenue last year by selling expensive SUV and luxury models. SUVs and luxury cars together made up over 63% of its sales, helping total revenue to stay strong even with tariff pressures.
The company’s profit results show that how hard trade rules have reduced it. In the last months of 2025, Hyundai’s profit dropped suddenly by about 40%, mainly because of the extra U.S. tariffs on imported vehicles. These tariffs made it hard to sell cars in a big market like the U.S., which is one of Hyundai’s most important markets to sell cars.
Even with the drop in profit, Hyundai is still hopeful about the future. The company wants to earn more money from each car this year by selling more cars and focusing on expensive models that bring in more profit.
Hyundai has also set targets for global sales growth in 2026. The company plans for more cars sold worldwide compared to last year. This includes different types of cars sold in many countries as the company tries to keep sales strong even in tough times.
A big reason Hyundai has been able to keep good sales is that it is focusing on SUVs and premium vehicles. These types of cars usually sell at higher prices, so they help the company make more money even when conditions are tough.
Car buyers around the world are still interested in Hyundai’s vehicles, especially in markets like the U.S. and Europe. The company continues to work on new models to improve popular cars, which helps to keep demand stable and gives the brand a strong global presence.
At the same time, Hyundai is adapting its plans for the long term. It is investing in future technology, like hybrid and electric vehicles, and offering more types of cars. New models and improved versions of existing ones are part of its plan to stay competitive worldwide.
To deal with the tariff situation in the U.S., Hyundai has also talked about manufacturing more cars inside the United States in the future so that it does not have to pay as much on tariffs. This plan can help Hyundai spend less and make their cars more affordable to buyers in the U.S. market.
Analysts say Hyundai’s focus on higher priced vehicles and global sales growth is helping it to stay strong even when profits are reduced by tariffs and competition. The company’s plan to sell more SUVs and luxury cars helps to reduce the effect of trade costs.
While it faces challenges from changing trade policies and economic conditions, Hyundai’s major plan to improve sales and make more advanced cars shows that the company is trying to remain competitive. Its work on new models and long-term strategies like local production and hybrid vehicles are part of how it plans to handle global market changes in 2026 and beyond.