Hyundai Motor Co. boosted its five-year investment commitment to 77.3 trillion won ($55.8 billion) starting in 2026, representing a 10% increase from its previous plan, as South Korea’s largest automaker doubles down on localizing production to counter escalating trade tensions.
The automaker announced the expanded spending during its first investor day held outside South Korea, choosing New York to underscore its commitment to the American market. The move comes as President Donald Trump’s administration threatens reciprocal tariffs on countries including South Korea.
Hyundai plans to channel 38.3 trillion won toward facility expansion and 30.9 trillion won into research and development. The company aims to produce more than 80% of vehicles sold in the U.S. domestically by 2030, doubling its current local production ratio.
Annual production capacity will reach 6.2 million vehicles by 2030, marking a roughly 20% increase from current levels. The expansion spans factories in India and South Korea, plus a Saudi Arabia plant scheduled to begin operations next year.
Chief Executive José Muñoz acknowledged the challenging environment, stating the company faces “a period of uncertainty” but remains positioned to win through manufacturing flexibility and technology leadership.
The company revised its 2025 profit margin guidance to 6-7% from an earlier target of 7-8%, citing the impact of newly imposed U.S. tariffs. However, revenue growth expectations increased to 5-6%, up from the January forecast.
Hyundai’s Georgia facility will expand to 500,000 units by 2028, requiring an additional $2.7 billion investment and creating 3,000 jobs. The automaker’s broader U.S. commitment totals $26 billion, part of its strategy to shield operations from potential trade barriers while capitalizing on America’s electric vehicle incentives.
