Hyundai told investors it will make more than 80% of the cars it sells in the United States by 2030, as it expands its Georgia plant and adjusts profit guidance to absorb tariff headwinds.

Ambitious US push and factory scale-up

Hyundai Motor has told investors it will shift the bulk of its US sales to local production, aiming for over 80% of vehicles sold in the United States to be built in America by 2030. The company plans to raise capacity at its assembly complex in Georgia to reach an annual output of 500,000 vehicles by 2028, with a model mix that leans heavily on hybrids and electric vehicles.

The move responds to higher tariff exposure under current U.S. policy. Hyundai said the change is intended to reduce the impact of U.S. tariffs, which management says has already trimmed near‑term profitability expectations. The company added that growing in‑market production wouldn't replace output in South Korea, but would shift where cars are built for the US market.

Jose Munoz, co‑CEO of Hyundai Motor, outlined the plan at an investor day in New York and described the ramp as a strategic response to trade rules. He also flagged operational complications after South Korean workers were detained during a raid at a battery facility in Georgia; he said many of those workers had been engaged in calibrating and testing advanced battery technology that supports Hyundai’s U.S. operations.

Profit guidance revised

Hyundai cut its operating profit margin target for 2025 to a range of 6–7% from an earlier 7–8% figure.

Mastheads

The company nevertheless kept its medium‑term margin targets intact, forecasting an operating margin of 7–8% by 2027 and 8–9% by 2030.

The guidance revision explicitly factors in the tariff cost assumed under current U.S. policy. Hyundai said current U.S. tariffs are the basis for its updated figures and that producing more vehicles inside the United States is central to shrinking tariff exposure over time. Management presented the margin change as a short‑term hit that should ease as local capacity comes online and the product mix shifts toward higher‑margin hybrids and electric variants.

For context, Hyundai and affiliate Kia together are among the world’s biggest automakers by sales. The United States is their largest single market, and Hyundai said a significant share of the cars it sold in the US this year were already built inside the country. The planned jump to 80% would therefore be a substantial rebalancing of production footprints.

Model strategy and product mix

Hyundai intends to expand its global hybrid line‑up beyond 18 models by the end of the decade, up from a previous plan of 14. The company also confirmed plans to introduce extended range electric vehicles in 2027 and to launch its first mid‑size pickup for North America before 2030. Executives said the Georgia plant will produce a mix of around ten hybrid and electric models.

That product mix is designed to help margins recover after the tariff‑related adjustment. Hybrids tend to carry higher margins than basic internal combustion models, and EVs present a route to capture incentives and premium pricing in some markets. Hyundai’s plan ties capacity increases to a deliberate shift in the types of vehicles it will offer to American buyers.

Analysts weigh long‑term tradeoffs

Some market watchers flagged risks. Shin Yoon‑chul, an analyst at Kiwoom Securities, warned that building such a large share of US sales domestically could become a fixed‑cost burden if tariffs are removed in the future.

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Executives said they hope both governments will reach an agreement soon.

This article was created with AI assistance.