Hyundai Motor decided to strengthen domestic sales to achieve this year's sales target set at the beginning of the year. This was because the administration of Donald Trump in the United States decided to impose a 25% tariff on all imported automobiles starting April 2, increasing the likelihood of a decrease in overseas sales.
According to the completed vehicle industry on the 1st, Hyundai Motor's domestic business headquarters adjusted its sales target for March upwards last week from its original plan and communicated it to each regional sales headquarters. The previously set sales target for March was 60,000 units, which was raised to 63,500 units, over 5% higher. As the domestic business headquarters ordered the revised target, it was reported that each regional sales headquarters exerted efforts to increase sales through discounts and reducing the delivery period.
Typically, the monthly sales target from the domestic business headquarters is communicated at the beginning of the month, so an increase of 5% at the end of the month is unusual. Within Hyundai Motor, interpretations suggest that proactive measures were taken in anticipation of a significant decrease in U.S. sales starting next month due to the tariff imposition by the Trump administration. A representative from Hyundai Motor noted, "It seems to be a proactive decision to strengthen domestic promotional activities ahead of the U.S. tariff imposition. The domestic sales target set at the beginning of the year may also be adjusted upwards."
Hyundai Motor sold a total of 4,141,791 units last year—705,010 units domestically and 3,436,781 units overseas. This figure did not meet the target (4,243,000 units). This year, the goal was set to sell 710,000 units domestically and 3,464,000 units overseas, but achieving this is uncertain due to the tariff measures in the United States, Hyundai's largest market. Last year, Hyundai recorded its highest performance ever by selling 911,805 units in the U.S. Currently, more than half of the vehicles sold in the U.S. are produced domestically and exported.
In the completed vehicle industry, there is analysis that even as Hyundai Motor strengthens its domestic promotional activities, it will be difficult to make up for the decrease in U.S. sales. This is because there are not many new models to drive domestic sales. Earlier this year, Hyundai launched a fully redesigned model of the large sport utility vehicle (SUV) Palisade. Since it is a large SUV with limited demand, its impact on overall sales is limited. The remaining new models are the hydrogen fuel cell vehicle Nexso and the electric vehicle Ioniq 6 mid-model change.
Hyundai Motor Group completed the Meta Plant America (HMGMA), an eco-friendly vehicle dedicated factory capable of producing 300,000 electric and hybrid vehicles annually, and has been operating since October last year. This plant is currently producing electric vehicles such as the Ioniq 5 and Ioniq 9. Hyundai Motor Group is reported to be considering advancing the production schedule for hybrid vehicles at HMGMA in response to the tariffs in the U.S.