Hyundai Motor Group Set to Benefit from U.S. Tariffs on Mexico
Hyundai Motor Group is likely to be one of the least impacted global automakers by the United States' proposed 25% tariff on goods from Mexico, potentially gaining a competitive edge in the U.S. market, according to industry analysts.
Major automakers such as General Motors (GM), Ford, Toyota, Nissan, Volkswagen, Honda, and Stellantis, which have significant manufacturing operations in Mexico, could face price hikes due to the tariffs. In 2023, GM led Mexican vehicle exports to the U.S. with 712,000 units, followed by Ford (358,000), Nissan (315,000), Volkswagen (287,000), Toyota (228,000), and Honda (211,000), according to Yonhap News Agency.
Compared to this, Hyundai Motor Group's dependency on Mexican production is relatively lower. The plant of Kia in Nuevo Leon shipped only 151,000 vehicles to the U.S. in 2024. The automaker is one of the least exposed to the tariffs.
This is likely to benefit Hyundai Motor Group with pricing ahead of rivals here, market analysts said. In the United States, about 2.8 million, or 16.5% of imports, originate from Mexico alone, of around 17 million vehicles sold a year. If Hyundai "operates under fewer dependencies from the country and finds an alternative pricing advantage against all competitors who now face tariff raises, they'd easily snatch most of their U.S. clients", he claimed.
A report from Shinyoung Securities said the Hyundai Motor Group is at least risk from its peers and might gain if rivals raise prices as they struggle to absorb the new tariffs.
Meanwhile, South Korean conglomerates operating in Mexico and Canada may be significantly affected by the new U.S. tariff policy. According to a Korea CXO Institute survey, 25 South Korean conglomerates run a total of 201 subsidiaries in the two countries, and concerns over potential financial strain arise when the tariffs may take effect possibly next month.
