Profit margin reduced amid tariff concerns
Hyundai Motor revised its financial targets for 2025, citing pressure from tariffs. The company now expects an operating profit margin between 6% and 7%, down from a previous range of 7% to 8%. Revenue growth is forecast at 5% to 6%, two points higher than earlier projections, based on 2024 figures of 175.2 trillion won (US$12.7 billion).
These updates came ahead of Hyundai’s CEO investor day in New York — the first time the company hosted the event outside South Korea. Newly appointed CEO José Muñoz led the meeting, presenting a vision for expansion despite short-term financial headwinds.
U.S. remains Hyundai’s top strategic priority
Muñoz called the U.S. Hyundai’s “engine of growth” and outlined a $26 billion investment from 2025 to 2028 to strengthen U.S. manufacturing. The company aims to produce over 80% of its U.S. vehicle sales domestically by 2030, up from the current 40%. Plans include a new midsize pickup and a rugged SUV developed for American consumers.
Hyundai expects to sell 5.55 million vehicles annually by 2030 — a 34% jump from last year’s global total of 4.14 million units. The strategy focuses on localization, efficiency, and market-specific innovation to solidify its position as the world’s third-largest automaker.
Immigration raid casts shadow over investor event
The New York investor meeting came weeks after a major immigration raid at a battery plant jointly owned by Hyundai and LG Energy Solution in Georgia. U.S. authorities arrested 475 workers, including more than 300 South Koreans, over visa irregularities. Most have since returned to South Korea.
Muñoz confirmed that those detained were suppliers’ employees, not Hyundai staff. He opened the event by expressing empathy for those affected and called for U.S.-Korea cooperation on short-term visa policies for specialized workers.
Calls for improved visa processes moving forward
Echoing comments from LG Energy Solution North America president Bob Lee, Muñoz emphasized the need for streamlined business travel solutions. Both executives expressed cautious optimism that improved policies could prevent future disruptions.
“As our executive chair said last week, we hope the U.S. and Korea can work on mutually beneficial solutions for short-term business travel,” Muñoz noted. The remarks aim to maintain positive relations while continuing to grow Hyundai’s U.S. footprint.
