Driving around Tariffs
Automakers are an inventive and innovative lot. When the world zigs, they zag, sometimes with incredible speed. Case in point, Hyundai recently opened its new Metaplant in Georgia. The $7 billion facility has been designed specifically to produce hybrid and all-electric vehicles for the U.S. market. It is no coincidence that the plant opened the same week that President Trump announced tariffs that include price hikes on automobiles, their batteries, and various foreign made parts.
The President’s tariff policies appear to be an ever-shifting floor and foreign EV manufacturers Are learning to be quick-footed in response. Hyundai’s Georgia plant for hybrid and electric cars will help to dodge some of Trump’s tariffs that will affect the price of auto sales in America. But that moving floor continues to shift so the future is more than murky as we write this.
The South Koren automaker currently sells four hybrids, one plug-in hybrid and four all-electric car models in the U.S. but Hyundai’s global plans include an investment of $90 billion in order to bring 21 new EVs to market by 2030. It also plans to produce 14 new hybrid models associated with its Kia, Genesis, and Hyundai marques.
Hyundai hopes to sell two million EVs per year by 2030, counting for a third of its global sales. The automaker has a way to go to attain that milepost as it sold over 750,000 EVs in 2024.
Supply Chain Fixes
Besides side-stepping tariffs by building its hybrids and EVs in the states, Hyundai is also investing $21 billion for onshore American manufacturing of parts and supply chains. This will include using stateside steel and battery components. Senior Vice President of mobile strategy and product planning for Hyundai North America, Olabisi Boyle tells the automotive press that the company is focusing less on governmental policy changes and more on building cars that consumer want.
For instance, Hyundai is committed to offering diverse powertrains to meet customer needs. These include gasoline powered ICE engines, hybrids that marry gas engines with electric motors and battery packs, and battery electric vehicles as well. This relates to the automaker’s massive Georgia plant that was originally designed to only build EVs but has evolved and expended to also produce hybrid and plug-in hybrid vehicles.
Holding Course on Turbulent Seas
In 2024, Hyundai was the number two seller of electric cars in America, behind Tesla in the top spot. The company’s multi-tiered strategy and competitive pricing are indicative of its long-term strategy and commitment to keeping the brand winning. In fact, 2025 may be a great year for Hyundai as Tesla earnings have dropped 71 percent over the last three months.
Hyundai is also promising to keep its car prices steady until June 2nd and the company’s CEO José Muñoz has said that Hyundai vehicles will not see huge price increases overnight. Other good news involves the long view for future EV sales as the price on batteries continue to drop over time. More EV production and better infrastructure over time will also help the price of EVs level out and even drop.
On the World Stage
Meanwhile, in Europe, the goal is that all new cars sold will be zero emission vehicles by 2035. With that in mind, Hyundai sells a compact electric car called the Inster that debuted this year. The modest people mover retails for less than $30K. The Inter is also available in Korea, where Hyundai and Kia combined enjoy a 70 percent share of the EV market.
In fact, the Inster was just named the 2025 World Electric Vehicle of the Year by the New York International Auto Show. With a real need for less expensive EVs in the American market, who knows, we may see the Inster in Hyundai dealerships one of these days.
Summing up tariff woes and the current state of affairs, SVP Olabisi Boyle tells us, “The future will include electric vehicles. We want them to be the best electric vehicles and the best choice for the customer. That’s not going away.”
