Hyundai Motor Company has fired a major shot across the industry. At the Genesis Magma launch event in France, CEO Jose Muñoz claimed the Korean group has quietly climbed to the number-two spot among the world’s most profitable automakers overtaking the Volkswagen Group.
Toyota, as always, remains the global benchmark. But the race right behind it has shifted in a way few expected this soon.
A Bold Statement on a Big Stage
Speaking to the press, Muñoz didn’t hedge or soften the news.
He said Hyundai has spent several years as the third-largest automaker by sales worldwide, but when it comes to profit, the company has now stepped into second place.
“We have become, already, several years in a row, the number three global OEM by sales. And in fact, when you consider profits, we are number two,” Muñoz told reporters. “So we just overtook Volkswagen very recently.”
The comment landed like a thunderclap partly because Volkswagen is currently struggling, and partly because Hyundai has been moving faster than most analysts anticipated.
The ‘Power of the Group’ Strategy
Muñoz credited Hyundai’s vertical integration for the leap. Internally, the company refers to this as the “Power of the Group,” a structure that combines over 50 aligned entities under one umbrella.
This isn’t just automotive manufacturing. Hyundai owns Boston Dynamics, giving it a serious robotics edge, and Supernal, its electric vertical take-off aircraft division. These play a long game, but the core profits are still coming from its bread and butter: Hyundai, Kia, and Genesis vehicles.
The integrated model lets the company build more in-house, control costs, and move technology across divisions without the usual supplier delays and bureaucracy.
Weathering Tariffs Better Than Rivals
Muñoz did admit that recent tariffs, particularly in the US, have hit margins.
But even with that drag, Hyundai’s decline was modest compared to its competitors.
“We lost about 30 per cent compared to last year,” he noted, while rival OEMs saw “70 per cent or more profit loss.”
In other words, everyone took a hit Hyundai just managed to keep more blood in the veins.
Volkswagen Stalls as Hyundai Accelerates
The Korean giant’s rise stands in sharp contrast to Volkswagen’s current situation.
Volkswagen Group is in the middle of aggressive cost-cutting, facing the possibility of closing factories in Germany, struggling with software delays, and trying to reset its EV strategy.
Meanwhile, Hyundai and Kia have benefited from a flexible platform approach that lets them swing between battery-electric and hybrid tech with impressive speed. Market tastes change, and Hyundai changes with them.
Genesis Magma Shows the Confidence
This sudden surge in profitability helps explain why Genesis can afford to launch Magma — a new high-performance sub-brand filled with wild concepts and powerful halo cars, while traditional luxury brands are tightening budgets.
It’s easier to build 478 kW orange drift machines when the parent company is raking in cash and outperforming one of Europe’s largest automakers.
Hyundai’s claim may spark debate, but one thing’s clear: the balance of global automotive power is shifting, and the Korean group isn’t shy about calling its shot.
