Hyundai Motor Group’s global executives convened on Thursday to devise strategies to address potential trade disruptions arising from Korea’s martial law crisis and the upcoming inauguration of Donald Trump’s second administration.
The company said its newly appointed president and CEO Jose Munoz, who doubles as the global chief operating officer, and overseas regional heads from Europe, Russia, China, India, Latin America and other regions gathered to discuss strategies for the potential impact of escalating domestic and global uncertainties on exports.
Industry insiders note that the assembly of leaders from all nine regions underscores the severity of the issue, given that only a few key regional heads attended last year’s meeting.
While the details of the meeting’s agenda remain undisclosed, sources say Hyundai Motor is bracing for a particularly challenging year. This includes possible business disruptions caused by Trump’s proposed tariff hike on foreign goods, his pledge to repeal electric vehicle subsidies, rising Washington-Beijing tensions, China’s expanding presence in global EV markets, the slowing growth of clean mobility, and other challenges.
“(President Yoon Suk Yeol’s) martial law declaration and the political turmoil are certainly not favorable, especially when high-level government dialogue between Korea and the US is crucial at this juncture,” said a source familiar with the matter on condition of anonymity. “But Hyundai Motor is expected to navigate these uncertainties headed by Munoz and the company’s US experts.”
China’s EV dominance, both at home and abroad, is also a growing threat for the Korean auto giant. According to data from market tracker SNE Research, China gobbled up a 58.5 percent share in the global EV market, led by homegrown brands such as BYD.
Despite these challenges, Hyundai Motor and China’s BAIC are reportedly investing $548 million each in Beijing Hyundai – the two carmakers’ joint venture producing Hyundai vehicles customized for the Chinese market. This investment aims to maintain the financial stability of Beijing Hyundai while launching its new car lineups and expanding its export capabilities.
Hyundai Motor expects this investment to create a turnaround, moving it closer to achieving next year’s sales target of 500,000 units in China. The company plans to roll out its first electric vehicle model next year, along with four new hybrid and other eco-friendly vehicles. It will also debut extended-range electric vehicles to meet local demand for long-distance travel.
Last year, Hyundai Motor sold only 239,000 units in China due to a continued slump caused in part by China’s retaliation against Korea’s deployment of the Terminal High Altitude Area Defense missile system that began in 2017. Currently, Beijing Hyundai operates two out of its four car manufacturing facilities, having sold its first Beijing plant in 2021 and its Chongqing plant this year.
