Hyundai shifts Tucson production to dodge tariffs, keep sales rolling

Hyundai $HYMTF ( ▲ 3.04% ) just made another chess move, showing that its plan to “sell like hell” through tariffs (as Randy Parker, CEO of Hyundai Motor America, put it) is more than just a quippy headline.

The details: The South Korean automaker is shifting production of some Tucson SUVs being assembled in Mexico—which are slated to be sold in the U.S.—to its Montgomery, Alabama plant. 

• News has it, Hyundai has already started putting the wheels in motion for the move, with key steps for the manufacturing transition already in play.

• The Montgomery plant has been building some Tucsons, with projected output at the facility projected to reach 150,000 this year—before the tariffs.   

• Hyundai’s production shift also includes moving the production of some Canada-bound vehicles to its Mexico plant.  

Why it matters: Hyundai’s approach to navigating various dynamics of the U.S. tariffs bodes well for anyone in business with the automaker, especially as it relates to avoiding losses in key product segments due to the levies.

Between the lines: You need to look no further than the Tucson SUV as proof of that, given how important the vehicle is to keeping Hyundai well-positioned in the game.

• The Tucson—which is on track to surpass 10 million units in cumulative sales this year—has played a pivotal role in Hyundai’s surging sales domination, with deliveries of the compact SUV up 21% for Q1.

• Hyundai’s bona fide contender in the segment has also contributed to the brand’s hybrid sales growth, which jumped 68% in Q1 2025, helping the company post its most profitable Q1 to date.

Bottom line: Hyundai continues to prove that it’s not only capable of playing its hand well in normal market conditions–but also, in the thick of more unpredictable market dynamics that require quicker moves to maintain momentum.

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