Hyundai Projects Robust U.S. Growth Despite Recent Challenges
Hyundai Motor Company announced revised financial targets and reaffirmed expansive growth plans for the U.S. market during its first-ever CEO investor day held outside South Korea on September 18, 2025, in New York City. Newly appointed CEO Jose Muñoz outlined a strategic focus on localized manufacturing and increased sales volume despite short-term profit margin adjustments.
Revised Financial Outlook Reflects Tariff Impact
The automaker lowered its 2025 operating profit margin guidance to 6-7%, down from the previous 7-8%, citing tariff-related pressures. However, Hyundai raised its revenue growth projection to 5-6%, up two percentage points from prior estimates, targeting approximately 179 trillion South Korean won (around $13 billion) in revenue for the year.
Ambitious Sales and Localization Targets
Hyundai reaffirmed its goal to boost annual global vehicle sales to 5.55 million units by 2030, representing a 34% increase over 2024’s 4.14 million units. Central to this growth is the U.S. market, which Muñoz described as the “engine of growth” for the company. The automaker plans to invest $26 billion between 2025 and 2028 to expand its American manufacturing footprint.
Hyundai aims to produce over 80% of its U.S. vehicle sales domestically by 2030, a significant increase from the current 40%. This shift will include new models such as a Hyundai-developed midsize pickup truck and a potentially more rugged SUV variant, reflecting consumer demand trends.
Context of Immigration Raid at Battery Plant
The investor event comes shortly after a significant immigration enforcement action on September 4, 2025, at a joint Hyundai and LG Energy Solution battery manufacturing facility in Ellabell, Georgia. U.S. authorities arrested approximately 475 workers, including more than 300 South Korean nationals, in what was described as the Department of Homeland Security’s largest single-site operation. The detentions were linked to suspicions regarding visa and immigration status violations.
Muñoz clarified that the detained individuals were employed by suppliers rather than Hyundai directly. He expressed empathy for the affected workers and their families and emphasized the importance of collaboration between the United States and South Korea to resolve visa and labor mobility issues. This stance was echoed by Bob Lee, North American president of LG Energy Solution, who expressed cautious optimism about preventing similar incidents in the future.
Outlook and Strategic Importance
Hyundai’s CEO stressed that the company’s U.S. expansion is not solely a response to tariffs but part of a broader strategy to establish an advanced and efficient manufacturing ecosystem. The investment and localization efforts are designed to secure Hyundai’s competitive position in the evolving automotive industry, particularly in electric vehicle production.
FinOracleAI — Market View
Hyundai’s reaffirmation of aggressive U.S. expansion plans despite short-term profit pressure and recent immigration enforcement challenges signals strong long-term growth commitment. The company’s focus on localizing production and new model development supports resilience against tariff risks and supply chain disruptions. However, regulatory and labor-related uncertainties remain key risks. Market participants should monitor the resolution of visa issues and progress on U.S. manufacturing investments as critical indicators of Hyundai’s ability to meet its 2030 targets.
Impact: neutral
