Goyang: Hyundai Motor Co. has no plans to raise vehicle prices in the United States for now despite Washington's 25 percent duties on automobile imports under U.S. President Donald Trump's "America First" trade policy, the automaker's chief executive officer (CEO) said Thursday.
According to Yonhap News Agency, Hyundai Motor CEO Jose Munoz addressed reporters during the media day at the 2025 Seoul Mobility Show, held at KINTEX in Goyang. Munoz stated that the announcement was not a surprise, as it was already explained previously. He assured that Hyundai would not be increasing vehicle prices at this time.
Munoz's comments were in response to questions about Trump's new reciprocal tariffs on America's trading partners, including South Korea. Although automobiles were excluded from the comprehensive scheme, they are subject to a separate 25-percent sectoral tariff measure that began earlier in the day. Munoz emphasized Hyundai's commitment to maintaining competitiveness by offering customers competitive products with good design, technology, and services.
The United States remains a crucial market for South Korean auto exports, with shipments totaling US$34.7 billion in 2024, representing 49.1 percent of South Korea's overall car exports. Hyundai Motor Group and GM Korea exported approximately 970,000 and 410,000 units to the U.S., respectively, last year.
In response to tariff pressures, Hyundai Motor Group recently announced a plan to invest $21 billion in the U.S. through 2028. Meanwhile, Kia Corp. CEO Song Ho-sung highlighted that the automaker has developed a business structure capable of responding quickly and flexibly to challenges. Song mentioned the use of the Hyundai Motor Group Metaplant America (HMGMA) production facility in Georgia as a strategy to mitigate tariff impacts. The plant, which began operations last month, currently has a production capacity of 300,000 units per year, with plans to expand to 500,000 units.
Song noted that about 40 percent of HMGMA production would be dedicated to Kia vehicles and that production is expected to start in the middle of next year. With Kia's EV6 and EV9 models already produced at a separate plant in Georgia, the HMGMA facility will likely focus on hybrid electric vehicles.