CEO outlines $26b US investment, production expansion amid tariff headwinds
Hyundai Motor CEO Jose Munoz outlined plans to launch 36 new vehicles in North America by 2030, backed by US production expansion aimed at strengthening profitability amid ongoing tariff pressures.
Highlighting North America as its "most profitable market," Munoz said at Thursday’s shareholders meeting that the company will introduce extended-range electric vehicles with driving ranges exceeding 600 miles starting in 2027. It also plans to launch its first body-on-frame midsize pickup truck before 2030, marking its entry into one of the industry’s largest and most lucrative segments.
Hyundai Motor Group Metaplant America in Georgia — completed last year — will serve as one of the company’s major US manufacturing hubs for the new lineup. The facility currently produces the Ioniq 5 SUV and Ioniq 9 SUV, with hybrid production set to begin this year, alongside prototype production of Ioniq 5 models equipped with Waymo’s autonomous driving technology.
Signaling a shift from Korea-based exports toward stronger US localization, Munoz emphasized that Hyundai has committed $26 billion between 2025 and 2028 — exceeding its cumulative investment in the US since entering the market in 1986.
The investment includes $12 billion to expand annual US production capacity to 1.2 million vehicles, $7 billion to strengthen the parts and logistics supply chain — including a new steel mill in Louisiana — and another $7 billion to advance autonomous driving, robotics, artificial intelligence and other future technologies through partnerships with US firms.
Despite a 15 percent US tariff on automobiles, Hyundai’s North American sales rose 8 percent year-over-year to 1.2 million units last year, marking a fifth consecutive year of record retail sales and a third straight year of record total sales. Key models — including the Tucson, Elantra, Santa Fe, Palisade, Ioniq 5 and Venue — each set annual sales records.
Munoz emphasized that the company’s multipowertrain sales strategy — spanning hybrids, fully electric vehicles and advanced internal combustion engine cars — has been well-received in the region, with EVs accounting for 26 percent of the retail mix. Hyundai’s premium Genesis brand also broke a record, selling 82,000 units in the US.
Hyundai plans to extend its aggressive, region-specific expansion strategy across emerging markets as well.
In China, it will roll out 20 new models over five years, targeting annual sales of 500,000 units. In Europe, the company will launch five models within the next 18 months, including the Ioniq 3 sedan, with all models to offer electrified versions by 2027. For the Indian market, Hyundai will introduce the country’s first locally developed electric SUV and launch the Genesis brand by 2027, as part of 26 new models planned over the decade, supported by a $5 billion investment through 2030.
As part of its push to transform into a technology-driven company, Munoz said Hyundai’s strategic partnerships with Nvidia, Google DeepMind and Waymo, along with investments in its subsidiaries — 42dot and Boston Dynamics — are strengthening its capabilities in physical AI and autonomous driving.
He also reaffirmed the automaker’s plan to deploy Boston Dynamics’ Atlas humanoid robots in manufacturing, with the goal of scaling annual production to 30,000 units by 2028.
hyejin2@heraldcorp.com
