Operational Excellence (OPEX) Daily Briefing – Thursday, October 30, 2025: Growth Does Not Mean Efficiency: Hyundai Motor Company and the OPEX Lesson.
Điểm Tin Operational Excellence (OPEX) Mỗi Ngày – Thứ Năm, Ngày 30/10/2025: Tăng Trưởng Không Có Nghĩa Là Hiệu Quả: Hyundai Motor Company Và Bài Học OPEX.
Welcome to my unique weekday article for the paid subscriber-only edition.
Operational Excellence (OPEX) Daily Briefing – issued on weekdays (Monday to Friday).
Điểm tin Operational Excellence (OPEX) hằng ngày (phát hành các ngày thứ Hai đến thứ Sáu).
This is the bilingual post in English and Vietnamese. Vietnamese is below.
Đây là bài viết song ngữ Anh-Việt. Tiếng Việt ở bên dưới.
English
Part 1: Official Statement – Record Revenue, Sharp Profit Decline at Hyundai Motor Q3/2025
On October 30, 2025, Hyundai Motor Company—South Korea’s leading automotive manufacturer—released its Q3 2025 financial results, revealing a mixed picture: record-high revenue but a sharp drop in operating profit.
According to the official figures announced by Hyundai and cited by Reuters, the company’s consolidated revenue for the quarter reached 46.7 trillion won (approximately USD 33.8 billion), up 8.8% year-over-year. However, operating profit fell by 29.2%, to 2.54 trillion won, bringing the operating margin down to around 5.4%—its lowest level since early 2023.
(Source: Reuters – “Hyundai Motor Q3 profit slumps as U.S. tariffs weigh,” October 30, 2025)
In the report, Hyundai attributed the decline in profitability mainly to the impact of U.S. import tariffs—specifically, the 25% tariff imposed on vehicles manufactured outside the United States since April 2025.
The company estimated a financial impact of around 1.8 trillion won for this quarter alone. Additionally, rising raw material costs, logistics expenses, and marketing costs have further pressured margins amid fierce competition from global EV makers such as Tesla, BYD, and Toyota.
(Source: Reuters, Bloomberg Automotive Analysis, October 30, 2025)
Despite the profit drop, Hyundai reaffirmed its 2025 full-year revenue and margin targets, emphasizing its commitment to expanding U.S. manufacturing capacity through facilities in Alabama and Georgia. The goal: to reduce export dependency and mitigate future tariff risks.
A company spokesperson stated,
“Hyundai will continue to focus on sustainable growth by optimizing costs, improving production efficiency, and expanding our electric vehicle lineup.”
(Source: Hyundai Motor Company Investor Relations, 2025 Q3 Conference Call Summary)
However, market analysts noted that revenue growth alone is insufficient to offset rising operational costs. When revenue increases but profit declines, it signals growing pressure on operational efficiency and servicing costs—now becoming key challenges for Hyundai.
This reflects the complexity of global operations, where even small shifts in tax policy, logistics, or currency exchange can create ripple effects across the entire value chain.
From an operational excellence (OPEX) perspective, Hyundai’s situation is not merely a story of “higher costs and lower profits.”
It illustrates a deeper structural shift in global operations—where companies must constantly balance growth, efficiency, and regulatory compliance.
This is particularly relevant as post-pandemic supply chains remain fragile, global labor costs continue to rise, and trade protectionism resurges in major markets.
In summary, Hyundai Motor Q3/2025 is not just a financial report—it is a case study on the limits of growth without operational control.
Record revenue means little if the underlying system is not agile and efficient enough to absorb cost volatility.
At the intersection of rising revenue and shrinking profit, one critical question emerges for global leaders:
How can a company grow—without losing efficiency?