Hyundai Motor rules out immediate price hike in US despite tariff hike

Seoul, April 3 (IANS) Hyundai Motor has no plans to raise vehicle prices in the United States for now despite Washington's 25 per cent duties on automobile imports under US President Donald Trump's ‘America First’ trade policy, the automaker's chief executive officer (CEO) said on Thursday.

"I have seen the announcement early this morning. It has not been a surprise because it has been already explained," 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.

Munoz added, "What I can tell you is that we are not going to increase prices right now."

He was responding to questions regarding Trump's announcement of new reciprocal tariffs on America's trading partners, including South Korea, reports Yonhap news agency.

While automobiles were excluded from the scheme, they are subject to a separate 25-per cent sectoral tariff measure, which went into effect earlier in the day.

"Our position in the market is to always be competitive. We have to offer our customers competitive products with good design, good technology and good services," the CEO said. "We will remain doing so."

America is a top auto export market for South Korea. Auto shipments to the U.S. amounted to $34.7 billion in 2024, accounting for 49.1 percent of the country's overall car exports in the year. Hyundai Motor Group and GM Korea exported around 970,000 and 410,000 units to the US, respectively, last year.

Amid Trump's tariff pressure, Hyundai Motor Group announced a plan last week to invest $21 billion in the U.S. through 2028.

Kia CEO Song Ho-sung, meanwhile, stressed that the automaker, an affiliate of Hyundai Motor, has built a business structure that allows it to respond quickly and flexibly to business challenges.

"Kia has a system in place that can respond swiftly and flexibly," Song told reporters at the auto trade show. "Once we internally determine a direction, we will study how to respond quickly and overcome the situation."

He said Kia plans to utilize the Hyundai Motor Group Metaplant America (HMGMA) production facility in the U.S. state of Georgia to mitigate the impact of tariffs. The plant, which began official operations last month, currently has a production capacity of 300,000 units per year, with plans to expand to 500,000 units.

"About 40 percent of HMGMA production will be for Kia vehicles," Song said. "Production is expected to begin in the middle of next year, and since our EV6 and EV9 models are already produced at our separate plant in Georgia, the models to be produced (at HMGMA) will likely be hybrid electric vehicles."

--IANS

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