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.
Hybrid becomes Hyundai Motor's new US strategy
Hyundai Motor CEO Jose Munoz introduces the carmaker's hybrid vehicle sales strategy during the 2026 CEO Investor Day in Seoul, Wednesday. Yonhap
By Lee Min-hyung
Carmaker turns to hybrid vehicles amid slowing EV sales growth in US
Hyundai Motor is expanding hybrid production and local sourcing in the United States, in a strategic shift to blunt the impact of tariffs.
The effort — unveiled at its 2026 CEO Investor Day on Wednesday — is centered on its plan to offer more than 10 hybrid models in North America by 2030, with a goal of making hybrids account for around half of its regional sales there.
The strategy goes beyond expanding its hybrid lineup. Hyundai said it will raise its North American local parts sourcing target to 80 percent in the same timeline, up from the previous target of 60 percent, as it seeks to build a more localized supply chain and reduce exposure to trade-related costs.
The vehicles will be produced at Hyundai Motor Manufacturing Alabama and Hyundai Motor Group Metaplant America in Georgia.
The shift comes as Hyundai Motor faces a more uncertain U.S. auto market. The company is subject to a 15 percent tariff on automobiles, while uncertainty over future U.S. trade policy continues to weigh on the automaker's long-term investment decisions.
To mitigate the risks, the carmaker is increasingly turning to hybrids as a way to maintain sales and profitability at a time when the U.S. auto industry’s transition to fully electric vehicles (EVs) remains uneven.
Hyundai Motor's fifth-generation Tucson SUV / Courtesy of Hyundai Motor
The approach is already showing results. Hyundai Motor's U.S. hybrid sales jumped 71 percent in the second quarter from a year earlier. North American sales reached 595,457 vehicles in the first half of this year, marking the company's best first-half performance in the region. Combined U.S. sales of Hyundai Motor and Genesis rose 3 percent to 489,656 vehicles during the same period.
Hyundai's hybrid push is also closely tied to its effort to improve profitability. The company raised its 2030 operating profit margin target to more than 9 percent, citing the expansion of hybrid models across compact, large and premium segments, as well as cost-cutting measures.
At the same time, Hyundai is preparing a third option between conventional hybrids and EVs. It plans to launch its first extended-range electric vehicle, or EREV, in the first half of 2027. The Santa Fe EREV, set to be built in Alabama, is expected to offer more than 900 kilometers of total range while retaining an electric driving experience.
The strategy reflects a recalibration of Hyundai's U.S. electrification road map. Rather than betting on a single powertrain, the company is expanding hybrids and EREVs while continuing to invest in EVs and their local production.
That could allow the automaker to turn a period of tariff pressure and uncertainty into an opportunity to deepen its manufacturing footprint in the world's second-largest auto market.
“The move is seen as the carmaker’s strategic shift toward a more localized U.S. business model in which production, sourcing and powertrain choices are increasingly designed around American market conditions,” an official from the auto industry said.