Eugene Investment & Securities forecast on the 10th that Hyundai Motor's operating profit for the second quarter of 2026 would fall 14.4% year on year to 3.1 trillion won. Revenue is expected to reach 48.8 trillion won, up 1.2% year on year, while net profit attributable to controlling shareholders is projected at 2.6 trillion won, down 14.8% — both figures marginally below market consensus.
The primary culprit is weaker sales volumes. Hyundai's wholesale shipments in the second quarter came to 970,000 units, a 6.2% year-on-year decline excluding China. Several disruptions compounded one another: a fire at parts supplier Anjeong Industrial caused component shortages; a separate blaze at Mobis's Indian facility curtailed production at Hyundai's Indian plants; and the conflict between the United States and Iran dented exports to the Middle East.
Electric vehicle sales were equally disappointing. Hyundai shifted 70,725 EVs at the wholesale level in the second quarter, a 10.2% year-on-year drop. The company lost ground to its sister brand Kia, which had the advantage of fresher EV models in the domestic market, while intensifying competition from Tesla and Chinese electric-vehicle makers added further pressure.
Lee Jae-il, an analyst at Eugene Investment & Securities, argued that the weak quarterly results reflect "temporary factors rather than any structural problem with fundamentals," and recommended that investors use the earnings trough as an entry point. He pointed to the scheduled second-half launches of fully redesigned versions of the Avante (marketed internationally as the Elantra) and Tucson, as well as additional hybrid model introductions, as catalysts for a sales recovery. The debut of the Ioniq 3 and a Genesis hybrid line-up — planned for 2027 — were also cited as potential drivers of a rebound in EV sales.
Eugene Investment & Securities maintained its buy rating and top-pick designation for Hyundai Motor, but trimmed its 12-month target price by 10%, from 1,000,000 won to 900,000 won. Based on the closing price of 445,500 won on 9th July, that implies an upside of 102%. The brokerage also revised down its full-year 2026 operating profit estimate by 6.6% to 12.301 trillion won.