Seoul: South Korea's leading automakers, Hyundai Motor Co. and Kia Corp., are expected to post record revenues in 2025 on robust sales in the United States, though their combined operating profit is forecast to decline due to the impact of U.S. tariffs, data showed Monday.

According to Yonhap News Agency, Hyundai Motor's annual sales and operating profit are projected to reach 187.9 trillion won (US$129.1 billion) and 12.5 trillion won, respectively, for 2025, reflecting a 7.2 percent increase in sales but a 12.3 percent decrease in profit from the previous year. Kia, its affiliate, is expected to see a 7.2 percent increase in annual sales to 115 trillion won, while its operating profit is forecast to drop 28 percent to 9.1 trillion won.

The combined annual sales and operating profit for Hyundai and Kia are predicted to reach 302.9 trillion won and 21.6 trillion won, respectively. This sales figure would mark an all-time high, surpassing the 300 trillion-won threshold for the first time, driven by strong U.S. demand. However, the estimated operating profit is significantly lower than an earlier forecast of 30 trillion won.

Under U.S. President Donald Trump's tariff policies, Korean-made vehicles had been subject to 25 percent tariffs for several months until the South Korean government secured a trade agreement with Washington to lower the duty to 15 percent starting in November.

Analysts anticipate a rebound for Hyundai and Kia in 2026, aided by reduced tariff burdens and increased shipments of hybrid models. "A recovery in performance is expected in 2026 due to an improved product mix driven by hybrid-focused new vehicle launches, the effect of reduced U.S. tariffs, and compensation for parts tariffs," said Lim Eun-young, an analyst at Samsung Securities Co.

Hyundai Motor and Kia are scheduled to release their earnings reports Thursday and Wednesday, respectively.