Hyundai Motor President: "Tariffs Don't Directly Lead to Price Hikes... We'll Respond Smartly"

"Pricing is Linked to Supply and Demand... We'll Maximize Market Opportunities"

"Increased US Investment Won't Undermine Korean Production"... Press Conference at New York Investor Event

Hyundai Motor President Jose Munoz speaking at the press conference (New York=Yonhap News) CEO Jose Munoz (left) answers questions at a media roundtable held at 'The Shed' in Manhattan, New York on the 18th (local time). 2025.9.20 photo@yna.co.kr [Provided by Hyundai Motor Company. Redistribution and database prohibited]

(New York=Yonhap News) Reporter Lee Ji-heon = Hyundai Motor President Jose Munoz stated that the imposition of US tariffs does not directly lead to an increase in vehicle prices in the US, and now is the time to act smartly in the market with tariffs in place.

Munoz made these remarks regarding the response strategy to tariffs imposed by the Donald Trump administration during a press conference held on the 18th (local time) after the '2025 CEO Investor Day' presentation at 'The Shed' in New York.

"Pricing is related to supply and demand, not tariffs," Munoz explained. "However, tariffs can be related to costs."

He continued, "What we need to do is to strike a good balance between supply and demand in the market and find ways to maximize demand. I believe this is a time to act smartly in the market."

He emphasized, "We must maximize the opportunities the market offers and optimize our strategies. There is a cycle where we launch new models with new features around the summer each year and then increase prices. We can indeed raise prices after launching new products."

Although Korea agreed with the US in July to reduce its automobile export tariffs to the US from 25% to 15%, a 25% tariff on automobile exports to the US remains in place due to ongoing difficulties in follow-up negotiations related to the tariff agreement.

Meanwhile, Japan has been subject to a reduced tariff of 15% on automobiles exported to the US since the 16th.

Hyundai Motor President Jose Munoz presenting at CEO Investor Day [Provided by Hyundai Motor Company and Kia. Redistribution and database prohibited] photo@yna.co.kr

Regarding the increased tariffs, Munoz said, "Costs will rise due to tariffs, but we can increase sales, and increased sales lead to improved margins."

He added, "If we build a better overall ecosystem with superior technology, quality, factories, and supply chains, and if we sufficiently control what we can control, we will be able to maximize and optimize current market opportunities to maintain good performance."

He stressed, "If we give up and only worry because of higher tariffs, we could face the worst-case scenario of losing the entire business. The way forward is to not give up and continue to deliver the best products and quality."

Regarding concerns that expanding overseas investments, including in the US, would lead to reduced production at Korean factories, he emphasized that Korean production would actually grow alongside the global production expansion targets.

Munoz stated, "We announced a plan to increase global production by 30% to 5.55 million units by 2030. For Genesis, for example, we plan to increase production from 225,000 units to 350,000 units, a 50% rise. If we had spoken about growth while investing in the US, then perhaps there would be concerns about Korean factories. However, we informed investors about our growth plans because we are confident."

He further explained that the decision to produce new models not manufactured in Korea at overseas plants demonstrates the company's commitment not to undermine its Korean business.

Hyundai Motor President Jose Munoz (center) answering questions at the New York investor event (New York=Yonhap News) CEO Jose Munoz answers questions during a Q&A session with investors at the '2025 Hyundai Motor CEO Investor Day' held at 'The Shed' in Manhattan, New York on the 18th (local time). 2025.9.20 photo@yna.co.kr [Provided by Hyundai Motor Company. Redistribution and database prohibited]

Regarding the hosting of the CEO Investor Day event in New York for the first time this year, he said, "We wanted to send a message that Hyundai Motor is a truly global company to many of our most important investors who are based in the US. We have indeed received positive feedback from investors from the US and New York."

Meanwhile, Lee Seung-jo, Head of Hyundai Motor's Planning and Finance Division, acknowledged during the press conference that management conditions could become more challenging next year due to the impact of tariffs.

"The tariffs were imposed in April, and we had built up inventory in advance, so the actual impact of the tariffs has been felt for about six to seven months," Lee said. "Next year, all 12 months will be under the influence of the tariffs, so the situation will become more difficult."

He added, "We will strive to overcome this through internal cost reductions and efficiency improvements, but the situation is not easy. We cannot predict whether the favorable exchange rate effect that helped us this year will continue to be favorable or unfavorable."

He emphasized, "While it is true that tariffs pose difficulties, we are strengthening our foundational capabilities by operating a task force team. We will strive to overcome and recover from these challenges."

Regarding concerns from foreign investors about the 'Yellow Envelope Act' (amendments to Articles 2 and 3 of the Trade Union and Labor Relations Adjustment Act), Lee stated, "During the discussion process, the US Chamber of Commerce and the European Chamber of Commerce also expressed concerns, and we submitted proposals indicating that it would be difficult for companies. Since the law has been enacted, we plan to make efforts to comply with it to the best of our ability."

He added, "Investors also expressed concerns regarding that matter. However, since it has been enacted into law, we explained that we will proceed with strict adherence." Yonhap News