Hyundai Motor tops Toyota in operating margin

[Photo by MK DB]

South Korea’s Hyundai Motor Group has surpassed Japan’s Toyota to become the world’s top automaker in terms of operating profit margin.

The operating profit margin, which indicates the ratio of operating profit to revenue, is a key indicator of a company’s operational performance. Analysis suggests that Hyundai Motor Group is solidifying its position among the ‘Big 3’ not only in terms of sales volume but also profitability in the global automotive market.

According to a data analysis on Sunday, Hyundai Motor Group, encompassing Hyundai Motor Group that includes Genesis and Kia recorded an operating profit margin of 10.4 percent at the end of March 2024. This surpasses Toyota Group (10 percent), GM Group (8.7 percent), Volkswagen Group (6.1 percent), and the Renault-Nissan-Mitsubishi Alliance (4.3 percent). The operating profit margin for Genesis and Kia under Hyundai Motor Group was 8.7 percent and 13.1 percent respectively.

The analysis is based on the first-quarter performance of the top five automotive groups by sales volume from the previous year.

Hyundai Motor Group surpassed Volkswagen Group in terms of global operating profit for the first time in the first quarter of 2024. Hyundai Motor Group achieved sales of 66.87 trillion won ($48.75 billion) and operating profit of 6.98 trillion won during the three-month period. Meanwhile, Volkswagen achieved sales of 111.55 trillion won and operating profit of 6.78 trillion won.

Global leader Toyota Group recorded sales of 97.54 trillion won and operating profit of 9.8 trillion won in the fourth quarter of the fiscal year 2023, which corresponds to the first quarter of 2024. Market watchers said Hyundai Motor Group has shed its mass-market image and established itself as a high-profit brand.