Hyundai Motor CEO highlights need to tackle challenges amid Trump tariff woes

Seoul: Jose Munoz, the chief executive officer (CEO) of Hyundai Motor, on Thursday highlighted growing trade tensions and protectionism as key challenges for the global automotive industry in 2025, urging strategic adaptability to maintain the company’s growth momentum.

Speaking at Hyundai Motor’s annual general shareholders’ meeting in Seoul, Munoz underscored how heightened geopolitical risks, economic uncertainties and fluctuating foreign exchange rates are impacting automakers worldwide, reports Yonhap news agency.

“The business environment in 2025 is expected to be even more challenging, with more geopolitical and trade uncertainties,” Munoz said. “With growing volatility in foreign exchange rates and U.S. interest rates, we are confronting escalating trade tensions and protectionism.”

The remarks come as global automotive groups, including Hyundai Motor Group, are bracing for looming reciprocal and sectoral tariffs on their exports to the United States under President Donald Trump.

Amid concerns of U.S. tariffs, Munoz reaffirmed Hyundai’s commitment to localised production as a buffer against shifting trade policies.

He highlighted the upcoming official opening of Hyundai Motor Group Metaplant America (HMGMA) in the state of Georgia, set to be held later this month, emphasising its role in bolstering the company’s footprint in the American market.

“The decision to invest in HMGMA was made during the first Trump administration,” he noted, stressing that Hyundai’s localisation strategy in the U.S. would help mitigate potential policy shifts.

The Georgia plant is set to ramp up production of Hyundai’s Ioniq 5 and Ioniq 9 electric vehicles (EVs), with hybrid vehicle production also in the pipeline.

When asked by Yonhap News Agency whether Trump may attend the HMGMA completion ceremony in Georgia, Munoz declined to respond, saying, “no comments today,” while heading back to his office after the meeting.

South Korean media outlets have reported that Hyundai was seeking to invite Trump to the ceremony, along with key figures within the current Washington administration. The event is expected to be attended by Georgia Gov. Brian Kemp.

Munoz also detailed Hyundai’s region-specific strategies to navigate regulatory and market challenges.

In Europe, the company plans to introduce new EV models such as the Casper Electric and Ioniq 9, while ensuring compliance with regional environmental regulations.

The CEO said the company was establishing a complete knockdown unit assembly base in Saudi Arabia with local partners, which will serve as a hub for Hyundai in the Middle Eastern market.

Regarding China, Munoz acknowledged the challenges in the world’s largest auto market, where Hyundai and other foreign automakers have struggled against domestic EV brands.

The CEO said Hyundai will adjust its production capacity in China and introduce new EV models tailored for local consumers.

In addition, Munoz reaffirmed Hyundai’s long-term commitment to electrification, highlighting the company’s US$90 billion investment plan to develop 21 new EV models by 2030. He also highlighted the company’s continued expansion of its hybrid vehicle lineup and its commitment to developing advanced battery technologies.

Amid intensifying competition, Munoz also spotlighted Hyundai’s strategic partnerships. He said the company was working closely with partners such as Amazon, General Motors and Waymo to enhance its technological edge in key areas.

—IANS