New Delhi [India], September 15 (ANI): Japanese automobiles may find yourself being bought at decrease costs than South Korean automobiles, resembling Hyundai Motor Co., within the American market when US tariffs on Japanese cars drop from 27.5 % to fifteen % on Tuesday.
As per a report by Pulse, the English service of Maeil Business Newspaper Korea acknowledged that the Korean autos, nonetheless topic to a 25 % tariff amid stalled tariff negotiations between Seoul and Washington, may turn out to be dearer than competing Japanese manufacturers.
Citing the a number of sources from the auto business on Sunday the report famous that the Kia Sportage Hybrid at the moment sells within the United States for USD 30,290, whereas the Toyota RAV4 Hybrid sells for USD 32,850.
If each corporations had been to go on the complete tariff burden – 25 % for Hyundai and 15 % for Toyota – the Sportage (USD 37,863) would find yourself dearer than the RAV4 (USD 37,778).
This leaves Hyundai little selection however to attenuate value hikes on the expense of profitability.
Since Hyundai Motor Group produces most of its HEVs in Korea and exports them, it can’t keep away from the 25 % tariff barrier. While the auto big does plan to construct an HEV manufacturing line at its Hyundai Motor Group Metaplant America (HMGMA) in Georgia, the earliest completion date is someday subsequent yr.
This presents a serious setback for Hyundai’s HEV gross sales progress within the U.S.
Hyundai and Kia’s HEV gross sales, actually, have been on a steep upward trajectory in recent times – 90,614 items bought in 2021, 124,191 in 2022, 183,541 items in 2023, and 222,486 items in 2024. From January to August this yr, gross sales rose 47.9 % on yr to 198,807 items.
Industry insiders, nonetheless, agree that Hyundai can’t proceed holding down costs if punitive tariffs stay in place.
According to Wards Intelligence, Toyota and Honda dominated the US HEV market with market shares of 51.1 % and 17 %, respectively, from January to August 2025. Hyundai and Kia ranked third with 12.3 %.
Compounding challenges, Hyundai Motor can also be dealing with battery provide disruptions after a US immigration raid at a battery plant co-owned by Hyundai Motor and LG Energy Solution Ltd. in Georgia. (ANI)