Hyundai Motor’s Chief Executive Officer, Jose Munoz, has called for strategic flexibility to navigate escalating trade tensions, protectionist policies, and economic uncertainties that could challenge the global auto industry in 2025. Speaking at Hyundai Motor’s annual general shareholders’ meeting in Seoul, Munoz highlighted the increasing geopolitical risks, fluctuating foreign exchange rates, and U.S. interest rate volatility as key factors affecting automakers worldwide.
“The business environment in 2025 is expected to be even more challenging, with more geopolitical and trade uncertainties,” Munoz stated. “With growing volatility in foreign exchange rates and U.S. interest rates, we are confronting escalating trade tensions and protectionism.”
Localized Production to Mitigate Tariff Risks
Hyundai, like other global automakers, is bracing for potential reciprocal and sectoral tariffs on U.S. exports under former President Donald Trump’s policies. Munoz reaffirmed Hyundai’s commitment to localized production as a strategy to counteract trade policy shifts.
A key element of this approach is the soon-to-be-inaugurated Hyundai Motor Group Metaplant America (HMGMA) in Georgia, a facility that was initially planned during Trump’s first administration. Munoz emphasized its strategic role in strengthening Hyundai’s market presence in the U.S. and reducing tariff vulnerabilities.
“The investment in HMGMA was made in the first Trump administration,” Munoz noted. “Hyundai’s localization in the U.S. would be able to counteract future policy changes.”
The Georgia facility will ramp up production of Hyundai’s Ioniq 5 and Ioniq 9 electric vehicles (EVs), with plans to manufacture hybrid models as well. When asked by Yonhap News Agency whether Trump would attend the plant’s opening ceremony, Munoz declined to comment. Reports suggest Hyundai is attempting to invite Trump, alongside other key figures from Washington. Georgia Governor Brian Kemp is expected to attend.
Regional Strategies for Market Growth
Beyond the U.S., Hyundai is implementing region-specific strategies to address market challenges and regulatory requirements.
Europe: The company plans to introduce new EV models, including the Casper Electric and Ioniq 9, while complying with stringent environmental regulations.
Middle East: Hyundai is establishing a knockdown assembly unit in Saudi Arabia with local partners, positioning it as a key production hub for the region.
China: Acknowledging difficulties in China’s competitive EV market, Munoz said Hyundai would adjust its production capacity and introduce new EV models tailored for local consumers.
Commitment to Electrification and Strategic Alliances
Munoz reiterated Hyundai’s long-term commitment to electrification, emphasizing a $90 billion investment plan to develop 21 new EV models by 2030. He also highlighted the company’s efforts to expand its hybrid vehicle lineup and advance battery technologies.
In response to growing industry competition, Hyundai is reinforcing its technological edge through collaborations with key partners such as Amazon, General Motors, and Waymo. These alliances aim to enhance Hyundai’s capabilities in digital technology, automation, and mobility solutions.
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