Seoul— Hyundai Motor has ruled out an immediate price hike for its vehicles in the United States, despite the recent imposition of 25 per cent tariffs on automobile imports under US President Donald Trump’s renewed ‘America First’ trade policy, the company’s CEO said on Thursday.
“I saw the announcement early this morning. It wasn’t unexpected, as it had already been discussed earlier,” Hyundai Motor CEO Jose Munoz told reporters at the 2025 Seoul Mobility Show’s media day held at KINTEX in Goyang, just northwest of Seoul.
“What I can tell you is that we are not going to increase prices right now,” Munoz stated, addressing questions about the potential impact of the new reciprocal tariffs announced by President Trump, which also target US trading partners including South Korea.
While passenger vehicles were excluded from the general tariff scheme, they are subject to a separate 25 per cent sectoral tariff, which went into effect earlier in the day.
“Our market position has always been based on competitiveness,” Munoz said. “We aim to offer customers value through well-designed, technologically advanced vehicles backed by strong service. That won’t change.”
The United States remains a crucial export market for South Korea’s automobile industry. In 2024, South Korea shipped $34.7 billion worth of vehicles to the US, accounting for 49.1 per cent of its total auto exports. Last year, Hyundai Motor Group and GM Korea exported approximately 970,000 and 410,000 units to the US, respectively.
In response to growing tariff-related pressures, Hyundai Motor Group recently announced a $21 billion investment plan in the US, to be implemented through 2028.
Meanwhile, Kia CEO Song Ho-sung, representing Hyundai’s affiliate brand, emphasized the company’s ability to adapt to shifting business conditions.
“Kia has developed a responsive and flexible operational structure,” Song said at the auto show. “Once we finalize an internal strategy, we’re prepared to move quickly to navigate and overcome challenges.”
To mitigate the impact of US tariffs, Kia plans to leverage the newly launched Hyundai Motor Group Metaplant America (HMGMA) in Georgia, which began official operations last month. The plant currently has an annual production capacity of 300,000 units, with plans to scale up to 500,000 units.
“Approximately 40 per cent of HMGMA’s production will be allocated to Kia models,” Song confirmed.
Production is expected to begin by mid-2025, with a focus on hybrid electric vehicles (HEVs).
Kia’s EV6 and EV9 models are already being produced at a separate Georgia facility. (Source: IANS)
