Lee Min-hyung joined The Korea Times in 2014 and has worked as a journalist mainly in Korea’s finance, tech and automotive industry. He specializes in content creation, breaking news and in-depth analysis currently on transportation and mobility. You can reach him via mhlee@koreatimes.co.kr.
Hyundai Motor eyes Europe, India, China amid prolonged US tariff shock
Hyundai Motor CEO Jose Munoz shares the firm's global growth strategy during its annual CEO Investor Day in New York, Thursday (local time). Courtesy of Hyundai Motor
By Lee Min-hyung
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Hyundai Motor will navigate its unceasing tariff risks in the United States by scaling up presence in Europe, India and China — three major powerhouses with strong potential for growth in eco-friendly vehicles, the carmaker’s CEO Jose Munoz said.
The global strategy reflects the carmaker’s willingness to offset its U.S. earnings decline through other territories in the mid- to long-term, by using the carmaker’s strength in developing and manufacturing electric vehicles (EVs).
The carmaker shared the vision during its annual CEO Investor Day event in New York, Thursday (local time), to alleviate mounting investor concerns over the firm’s steep earnings fall caused by the aftermath of the U.S. government’s imposition of a 25 percent auto tariff.
The company’s operating profit plunged 828.2 billion won ($593 million) in the second quarter from a year earlier, and the figure is widely expected to increase in the third quarter due to the prolonged tariff shock.
Hyundai Motor is going all out to boost its EV sales in Europe in particular. The automaker is set to launch its much-hyped IONIQ 3 all-electric hatchback next year in the region. The company recently unveiled its concept model during IAA Mobility 2025 in Munich.
The company expects the new vehicle to serve as a stable profit booster in Europe, as the smallest IONIQ model from the automaker is specially designed to meet solid hatchback demand from local customers.
The company sold more than 106,000 EVs between January and July this year in Europe, up 46 percent from the previous year.
Hyundai Motor aims to boost EV sales there by sharpening its portfolio and launching more quality cars with high commercial value. According to estimates from the carmaker, some 85 percent of vehicles sold in Europe will be eco-friendly cars by 2030, up 36 percentage points from this year’s forecast.
India is another major strategic market for the carmaker, as it has risen to become the company’s second-largest auto market in terms of sales. Data from the Korea Trade-Investment Promotion Agency showed that Hyundai Motor secured a market share of 14 percent in India, clinching the No. 2 spot following Maruti Suzuki.
Given India’s strong economic growth potential, Hyundai Motor is also scheduled to launch a new compact electric SUV tailored for Indian customers by 2027.
“Most OEMs (original equipment manufacturers) struggle in India because the country is a competitive market,” Munoz told investors during the event. “We are, however, one of the most profitable companies in India.”
Hyundai Motor is also ready to strengthen its once-struggling Chinese business with the upcoming launch of its Elexio electric SUV.
Munoz expressed hopes of grabbing opportunities in China by launching more EVs there. The carmaker has yet to introduce any models from its flagship IONIQ EV lineup to China.
“We are delivering comprehensive electrified portfolios across all segments, localizing production in key markets,” he said. “Our ability to adapt quickly, combined with the power of our affiliates and our unwavering commitment to customers, will enable us to continue unlocking tremendous value for our stakeholders.”
Regarding the carmaker’s possible return to its Russian market, he dismissed the possibility, saying that the country is not included in the carmaker’s global strategy for the time being.