On the campaign trail, when Donald Trump declared that tariffs were “the most beautiful word in the dictionary,” he promised to impose a 25% tax on all imports from Mexico and Canada, as well as an extra 10% on products from China, as soon as he took office.
This sounded alarms throughout the auto industry, as tariffs could drastically affect automakers’ bottom lines and substantially increase consumer prices.
But although Trump’s January 20 Inauguration date is quickly approaching, Hyundai Motors seems intent on keeping calm.
At the company’s annual New Year’s Address on January 6, 2025, Hyundai Motor Group Executive Chair Euisun Chung reassured attendees that “there is no need to be intimidated by uncertainties ahead,” because “without challenges, we risk becoming complacent, which presents a bigger danger.”
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Embracing change could even help the company innovate, Chung said, because “challenges can sharpen awareness and drive action.” He added that Hyundai Motor Group has successfully navigated challenges in the past and emerged stronger before, and reiterated that “we will do the same again.”
How would Trump’s tariffs affect Hyundai Motors?
Headquartered in Seoul, South Korea, Hyundai Motors is the world’s third-largest automaker in terms of production, behind ToyotTMand Volkswagen. It operates the Hyundai, Kia, and Genesis brands.
Only about 5% of Hyundai’s sales are tied to Mexico, where it produces models like the Tucson SUV and Kia K4 sedan. Compared with other automakers, Hyundai doesn’t have a lot of exposure to the country. Ford (F) , for instance, counts 9% of its total sales as exports from Mexico, while GM’s (GM) Mexico exports account for 12% of its sales.
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Analysts at S&P Global estimate that a Canada-Mexico tariff would impact Hyundai’s profits by less than 2%.
However, if Trump enacts a broader, “universal” tariff plan, which would impose a flat 20% tax on all vehicles, the Korean automaker would be hit much harder. According to S&P Global, the company could see as much as 19% of its 2025 EBITDA wiped out.
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What are some of Hyundai’s recent innovations?
Hyundai has been on a tear lately, posting its best-ever total sales for the month of December and setting annual sales records for the fourth year straight.
The company posted 2024 sales of 836,802 units, an increase of 4% over 2023. The Elantra N, Santa Fe HEV, Tucson HEV, and IONIQ 5 all set record sales in the fourth quarter — in fact, Hyundai’s EV retail sales grew a tremendous 64% year-over-year.
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Hyundai has a stated goal to become one of the world’s top EV manufacturers by 2030. It’s considered a standard bearer in the electric vehicle trend, first with hybrids and then with EV powertrains. With the launch of the hybrid Santa Fe, Tucson, and Elantra models in 2021, sales volume soared.
The Ioniq 5, EV6, and Ioniq 6 all took home numerous awards in the past two years — the Kia EV9 was even named the “2024 World Car of the Year” by an international jury of automotive journalists.
Along with its 1-2 punch of great fuel economy at a reduced cost, Hyundai has also been innovating in the C-suite, recently promoting its President of Hyundai North America, José Muñoz, to the role of CEO. Choosing a non-Asian CEO was a power move designed to help the company navigate global uncertainties, but it was also “a clear expression of [the company’s] commitment to innovation,” according to Chung.
The Pony quickly put Hyundai on the map.
Charles01, CC BY-SA 3.0, via Wikimedia Commons
Hyundai’s history of embracing change
The Hyundai Engineering and Construction Company was founded in 1947 by Chung Ju-yung in Seoul, South Korea. It was a family-run conglomerate out of which the Hyundai Motor Company emerged in 1967. At first, Hyundai collaborated with Ford to make the Cortina, Ford’s family sedan. In 1975, Hyundai began manufacturing its own models, rolling out the Pony, a front-engine, rear-wheel-drive vehicle with a whopping 70 horsepower.
Its sheer affordability made it instantly popular everywhere it was sold, which included Chile, Argentina, Colombia, Ecuador, and Egypt, but it would take until 1986 for Hyundai’s vehicles to pass emission standards and be sold in the U.S.
Priced at $4,995, the Excel sold 700,000 units in its first seven months — that’s considered the strongest launch ever by an import carmaker. By 1987, the Excel was the best-selling imported compact car in the U.S.
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But Hyundai’s early insistence on value came at a cost: reliability. Critics called its vehicles “clunky” and “dull;” problems surfaced with stalling and faulty engine parts that could even cause fires. Sales declined, and the name “Hyundai” jokingly became an acronym for “hope you understand nothing’s drivable and inexpensive.”
In the early 2000s, Hyundai looked to the example of Japanese automakers to improve its designs, making big investments in better quality, safety, and manufacturing practices.
To prove it was serious and regain consumers’ trust, it offered buyers incentives like “The Hyundai Advantage,” a 10-year, 100,000-mile powertrain warranty that was one of the strongest auto warranties to date.
As a result of the Asian Financial Crisis, Hyundai acquired Kia Motors in 1998. It also expanded its production footprint by building a $1.7 billion manufacturing plant in Montgomery, Alabama.
By 2004, Hyundai tied with Honda for initial brand quality on surveys by J.D. Power, and its sales were back on track.
Luring top talent from European automakers, Hyundai took its designs up a notch with models like the Veloster and its fleet of SUVs, and it launched the high-end Genesis line in 2003.
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Hyundai’s innovation didn’t stop there. In fact, you might think some of its products come straight from a Sci-Fi movie.
Hyundai pioneered the Electric Global Modular Platform (E-GMP) platform, which has a flexible chassis that can accommodate a variety of vehicle shapes. It has also invested in advanced manufacturing systems, including robotics, and tested hydrogen-powered vehicles, autonomous driving systems and even flying taxis.
It was also the first automaker to collaborate with Amazon to sell its vehicles on the platform — all reasons why CEO Munoz considers Hyundai to be a “technology company,” and not just a car company,
Even the Pony got a glow-up. In May 2023, almost 50 years after it was first introduced, Hyundai reintroduced the Pony Concept at the Turin Motor Show in Lake Como, Italy. The car had the same minimalistic styling, with lots of techie upgrades, that made it, somehow, much more beautiful.
Who owns Hyundai?
Hyundai’s owner — a parent company called Hyundai Motor Group — also owns automakers Genesis and Kia.
Hyundai Motor Group is a publicly traded company, meaning individual investors can buy equity in it, but its stock trades on the over-the-counter markets rather than on the NYSE or Nasdaq, which means it is not available on most common trading platforms like Robinhood and usually must be purchased or sold with the help of an OTC broker.
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How to Pronounce Hyundai
The answer is “hyun·day”(rhymes with Sunday). Even Hyundai itself poked fun at consumers’ perennial mispronunciation of its name in a recent car commercial.
Well, now we know.
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