Hyundai aims for over 80% US production by 2030 while cutting near-term profit goals

Hyundai Motor plans to make most of the cars it sells in the United States inside the country by 2030 and is cutting a near-term profit goal as United States tax policies bite. 

The Korean car manufacturer said it is targeting more than 80% US market localization by the end of the decade.

In materials released prior to its CEO Investor Day in New York, Hyundai lowered the 2025 operating margin objective to 6% to 7%, down from an earlier stated 7% to 8%. It continues to expect profitability to climb to 7% to 8% and 8% to 9% by 2027 and 2030 as its North American production grows and model mix shifts.

Hyundai, along with affiliate Kia, ranks as the world’s third-largest carmaker by sales. The company stated that its factory in Georgia is on course to produce 500,000 automobiles annually by 2028. Output in the state will include hybrids and electric vehicles.

This year, 40% of Hyundai automobiles sold in the US, which accounts for more than 40% of revenue, were built in America.

Trade tensions push Hyundai to revise global product plans

Product plans are being adjusted. Hyundai announced that it will increase its global hybrid range to over 18 models by 2030, up from the previously planned 14, and will introduce extended-range EVs in 2027. It also intends to roll out its initial mid-size pickup for North America ahead of 2030. The Georgia factory will eventually assemble a combination of 10 hybrid and electric vehicle nameplates.

The strategic shift follows tariff moves announced in Washington. On July 30, Trump said the United States would levy a 15% duty on imports from Korea, which reduced from a previously threatened 25% , and cut automobile import duties to 15% from the existing 25% in exchange for Seoul pledging $350 billion of investment in the US.

Washington this week began applying a lower 15% rate to vehicle and vehicle parts from Japan, while South Korean auto shipments still face a 25% rate for now. Officials in Washington and Seoul continue to work through sticking points to finalize the July trade package, with details regarding the proposed $350 billion investment fund still unsettled.

The cost of the uncertainty is showing up in financials. Hyundai in July said United States tariffs reduced second-quarter earnings by $606.37 million and warned the impact would expand in July to September period.

Seoul investigates worker treatment in US raid

South Korea has opened a government inquiry into possible human-rights abuses tied to a United States immigration carried out a raid at a Hyundai Motor construction site earlier this month.

The probe covers more than 300 South Korean nationals and follows anger at home after authorities in Seoul received no advance notice of the operation despite the country’s commitments of nearly $500 billion in United States investments and energy acquisitions under its trade pact with Washington.

Korea’s Foreign Ministry, working with the Justice Ministry and employers of the former detainees, is examining whether violations occurred in the detention center and if any Korean was wrongfully taken into custody based on their job at the time of the September 4 operation.

If investigators find evidence of abuse, Seoul plans to submit an official complaint to the United States. A Korean official said the review should conclude within weeks.

While visiting Seoul on Sunday, United States Deputy Secretary of State Christopher Landau conveyed profound regret over the detentions. The United States embassy in Seoul did not immediately comment. A recent local opinion poll found that over 60% of Koreans saw the Georgia raid as disproportionate and said they were disappointed with the United States government.

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