The West Asia conflict between the US and Iran has set off a domino effect that is starting to affect business in Asia. One of the region’s premier car manufacturers, Hyundai, is now recording a sharp decline in its revenue. According to their latest filings, the company saw a 31% decline in Q1 revenue and warned of growing business uncertainty as a direct result of the West Asia conflict.
Earlier this month, the automaker expressed concerns about the global supply chain, noting that most of its exports to Europe and North Africa transit through the conflict-ridden region, which has caused several disruptions recently.
The Chief Financial Officer at Hyundai, Lee Seung-jo, said during a post-earnings call with analysts, “Uncertainty is rising higher than ever in the global automobile industry due to the war, US tariffs and other macroeconomic risks.”
Hyundai, together with its affiliate, Kia Corp, is the world’s third-biggest automaking group by sales. It posted a revenue of around $1.7 billion in the first quarter of FY2026, compared to $2.42 billion in the same period a year earlier.
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Most analyses, such as LSEG SmartEstimates, attribute this revenue loss to a flurry of unfortunate events that have shaped the business this year. Starting with Trump’s 15% reciprocal tariff and ending with the West Asia conflict, which has also caused a sudden spike in the prices of steel, nickel, lithium, platinum, and other raw materials of utmost importance to car manufacturers around the world.
