Hyundai has high expectations for growth—even as it trims its 2025 profit forecast and faces uncertainty over potential tariffs.
The details: At its U.S. investor day Thursday, the automaker said it is lowering its profit margin projections but raising its revenue outlook, which Hyundai CEO José Muñoz described as an “engine of growth.”
The South Korean automaker now expects its 2025 operating profit margin to land between 6% and 7%, down from its earlier forecast of 7% to 8%.
Revenue projections have been raised to between 5% and 6% growth, up two percentage points, compared with 175.2 trillion won (US $12.7 billion) in 2024.
What they’re saying: “This isn’t just about tariff mitigation, it is about building the most advanced, efficient manufacturing ecosystem in the automotive industry,” said Hyundai CEO José Muñoz, adding that the U.S. is its largest opportunity for expanding localized manufacturing (via CNBC).
Why it matters: Hyundai aims to produce more than 80% of its U.S.-sold vehicles locally by 2030, up from about 40% today. That target could strengthen its competitive position in the U.S. market, especially particularly if tariffs remain in place long term.
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Between the lines: Hyundai’s growth ambitions and push for deeper U.S. manufacturing investment come amid heightened tensions between South Korea and the U.S. over labor and trade issues.
South Korea has vowed to examine the Georgia raid by U.S. Immigration and Customs Enforcement (ICE) for possible human rights abuses.
Trade talks aimed at lowering tariffs have stalled, with concerns mounting over the foreign exchange implications of a $350 billion investment fund.
“As our executive chair said last week, we hope the U.S. and Korea can work on mutually beneficial solutions for short-term business travel, especially for specialized technical expertise,” Muñoz said.
Bottom line: Hyundai is betting big on U.S. growth by increasing revenue targets and expanding local manufacturing to offset profit margin cuts and navigate tariff uncertainty, which could bode well for U.S. dealers with stronger supply, faster turnaround on new models, and less vulnerability to tariffs.
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