Hyundai is preparing to increase the price of all its vehicles in the US, while the automaker seeks to cushion the impact of tariffs imposed by President Donald Trump, according to people familiar with the matter.
The South Korean manufacturer is considering a 1% increase in the suggested consumer price of all models of their line, starting next week, the sources said, who asked not to be identified for discussing a plan that is not yet public.
The measure would apply to newly final vehicles, leaving cars already available at dealers without change. In addition, the company will probably increase shipping fees and optional costs such as carpets and ceiling bars installed before the cars arrived at dealers to avoid further raising the base price of vehicles, the sources said, warning that discussions are underway and can change.
Hyundai has stated that its price strategy is designed to ensure that it remains competitive, but no final decision has been made.
“This period marks our regular annual revision of price, guided by market dynamics and consumer demand, regardless of tariffs,” the company said in a statement. “We will continue to adapt to changes in supply and demand, and regulations, with a flexible price strategy and directed incentive programs.”
The measure would be one of the most comprehensive actions taken by an automaker in response to the high tariffs that Trump imposed on cars and imported pieces. Hyundai, one of the largest car saleswomen in the US, had previously promised to maintain stable prices until June 2 for its main brand and the genesis luxury line.
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Hyundai CEO, José Muñoz, told the Bloomberg Last month that did not expect a sudden and large increase in prices, but did not comment on what was planned for the rest of the year.
The increase in price and higher rates would add at least a few hundred dollars to each vehicle. Despite having large US assembly factories, the Hyundai Motor Group is one of the largest importers of finished vehicles in the country. Including its Kia and Genesis affiliated brands, Hyundai imported about 1.1 million vehicles for the US last year, behind only Toyota and General Motors, which imported approximately 1.2 million cars each.
The Hyundai Motor Group has revealed plans in March to make a record investment of $ 21 billion in the US to locate more parts and vehicle production, including a new steelmaker in Louisiana and the expansion of its new Savannah assembly factory, Georgia. In full capacity, investments will allow Hyundai and Genesis to manufacture 70% of what they sell in the US in household plants, Muñoz said.
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Hyundai president Chung Eisun visited Trump at the White House to mark the announcement, which was praised by the president. But this did not result in much relief in the automaker or South Korea.
The automakers have been slow to increase prices, even with industry leaders warning that tariffs can add thousands of dollars in additional costs to each vehicle. Ford has increased the prices of three models imported from Mexico, while several other automakers have removed their financial goals due to the instability of global trade. Subaru confirmed earlier this month that vehicle prices also increased in the US.
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