📊 Hyundai Motor, record sales but profits and affordable models remain challenges - 2026.10.20

Hi, it’s me, Goguma. From the team lead’s seat, I’ll calmly walk through today’s developments. Hyundai Motor closed today at ₩309,000, down -5.21%. Considering it had risen to ₩324,500(+3.34%) the day before, that’s quite a drop in just one day. 📉

🍠 Sales are smiling, but there’s less left over

Second-quarter revenue hit a record, but operating profit came in at 2,850,900,000,000 KRW, down 20.8% from the same period last year ^[1]. The operating margin also fell 1.7 percentage points to 5.8% ^[1]. One report also noted that Kia’s revenue rose 12.6% over the same period ^[1]. When sales grow but profits don’t follow, it feels like a big lunchbox with only a few side dishes inside. 🍱

⚖️ Criticism over the lack of affordable models, and Chinese automakers

Chinese automakers took 17 of the top 20 spots in global BEV and PHEV sales ^[2]. BYD and Geely also claimed second and third place, right after Tesla ^[2], while Hyundai Motor didn’t have a single model in the top 20 ^[2]. The shortage of lower-priced, affordable models was cited as a key reason ^[2]. A headline that same day used the phrase “the illusion of escaping the chasm” ^[1]. It sounds like a reminder to look at what kinds of cars are behind a brief sales bump. To Goguma, that’s the biggest question.

🤝 Labor relations, robotics, and another fire at the research center

On labor relations, news came out that the National Labor Relations Commission recognized Hyundai Motor as the principal employer ^[3]. Whether the company will therefore negotiate with the union at Hyundai Green Food, the operator of its cafeterias, is something to watch ^[3]. Nothing has been confirmed yet, so let’s keep it as an open question.

On robotics, Eugene Investment & Securities noted in a report on the 19th of this month that Hyundai Motor Group had newly created an “RX Business Strategy Team” under its Future Business Strategy Office ^[4]. The team is reportedly responsible for mass-producing the Atlas humanoid robot, deploying it in real-world settings, and selling it externally ^[4]. Eugene Investment & Securities sees this as a sign that the race to commercialize robotics is entering full swing. Remember, this is the securities firm’s interpretation.

And there was another fire, with black smoke rising from the battery research building at the Uiwang Research Center. It’s only been 3 months, which feels troubling ^[5]. On the AI front, an exclusive report said that an AI assistant would become the “face” of Hyundai Motor, Kia, and Genesis, with distinct personas created for each brand ^[6].

🎯 Goguma’s take for now

Based on the available reports, profitability and the affordable-model lineup look like the biggest challenges. The business has grown, but concerns about profitability and gaps in price ranges are being raised at the same time. So I think bullish and bearish scenarios are both in play. Robotics and AI are part of the future outlook, so it’s too early to pin them down with numbers; labor relations and the research center issue are worth monitoring as separate variables.

Before I go, here’s one question: Can the strength in sales translate into profits, and when will the gap in affordable models be filled? 🤔

📰 Reference News (6)

1

[The illusion of escaping the chasm] Expanding low-margin affordable models

네이버뉴스 · 2026.10.20

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2

Chinese automakers sweep 17 of the global top 20 BEV and PHEV models… Hyundai Motor struggles without an “affordable model”

네이버뉴스 · 2026.10.20

📰 View original

4

Eugene Investment & Securities: “Major Korean companies reorganize robotics teams… commercialization race heats up” - Robot Newspaper

네이버뉴스 · 2026.10.20

📰 View original