South Korea’s Hyundai Motor said on Thursday it is in talks with General Motors to supply commercial electric vehicles to its North American competitor, while it expects sales growth to halve this year due to cooling demand.
The company also signaled the political risk in the United States, with the inauguration of US President Donald Trump, who promised import tariffs, although he said any negative impact would be greater for Japanese rivals.
The automaker also said it intends to sign binding cooperation contracts in the acquisition of parts and passenger and commercial vehicles in the first quarter of this year.
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“We are considering rebranding our commercial electric vehicles and supplying GM… The agreement will pave the way for our entry into the North American commercial vehicle market,” Hyundai Chief Financial Officer Lee Seung Jo said on a conference call with analysts.
The talks come as automakers prepare to face political uncertainty in the U.S., the world’s second-largest auto market, which could affect demand.
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This week, US President Donald Trump said he could impose 25% tariffs on Canada and Mexico from February 1st.
Hyundai expects to be less impacted by North American tariffs compared to its Japanese rivals, such as Toyota Motor and Honda Motor, which have a larger manufacturing presence in Mexico and Canada.
The South Korean automaker said it plans to further allocate production to the U.S. to minimize any tariff impact. The company also said it will produce hybrid vehicles at its new plant in Georgia.
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Hyundai, which with its affiliate Kia is the third largest automaker in the world by sales, predicted this Thursday revenue growth of 3.0% to 4.0% in 2025, compared to an increase of 7.7% in the previous year. . The company expects an operating margin of 7.0% to 8.0% for the year, up from 8.1% in 2024.
From October to December, Hyundai reported operating profit of 2.8 trillion won ($1.95 billion) as it spent on promotions in a slowing auto sector.
