Hyundai has surpassed Volkswagen to become the world’s second-most profitable carmaker, according to CEO Jose Muñoz. He confirmed the shift during the global debut of Genesis’s new Magma performance sub-brand in France.
Muñoz noted that Hyundai has long held third place in global sales but has now moved ahead of Volkswagen in profitability. Toyota remains the industry leader in both sales volume and profit.
Hyundai’s improved position is being attributed to its vertically integrated structure, which includes more than 50 companies.
Although the group owns technology-focused firms such as Boston Dynamics and Supernal, Muñoz stressed that most earnings still come from its core automotive operations.
Describing the approach as the ‘Power of the Group,’ Muñoz said Hyundai’s consolidated structure allows stronger operational control than many rivals.
He acknowledged that tariffs had affected profitability but said Hyundai experienced only a 30% decline in certain areas, compared with losses exceeding 70% among some competitors.
Volkswagen, meanwhile, posted an operating loss of €1.3 billion in the third quarter. The result was driven by a €4.7 billion charge linked to Porsche’s updated electric-vehicle strategy.
The group also faces up to €5 billion in U.S. tariff-related costs. Volkswagen maintained its full-year outlook but warned that ongoing chip shortages could cause further production disruptions.
While competitors face financial strain, Hyundai and its affiliate Kia continue to report record revenue, helped by flexibility in shifting between electric and hybrid models.
The company’s strengthened profitability is supporting investments in new performance-focused projects such as the Genesis Magma line, even as others scale back on spending.
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