Interview with Bloomberg
"US Investment Not Due to Tariffs or Incentives"
Jose Munoz, President of Hyundai Motor Company, forecasted that car prices would remain stable despite the imposition of import tariffs on automobiles in the United States.
In an interview conducted on the 15th (local time) at Bloomberg's New York office, Munoz said, "I do not expect to see a huge price increase overnight," adding, "The market will decide the (prices)."
Bloomberg reported that Munoz's remarks counter the views of some industry insiders and consumers who fear that car prices in the U.S. could surge this year due to the tariff policies of the Donald Trump administration.
Munoz further predicted that the impact of tariff costs borne by automakers could vary depending on the price range of the vehicles, and companies might accept short-term profitability declines for relatively affordable models.
He said, "I do not think entry-level prices will rise by $3,000 to $4,000 (approximately 4.29 million to 5.71 million KRW)," adding, "Those customers are very sensitive to price, and if prices rise that much, they will not buy cars."
Additionally, Munoz revealed that after Hyundai announced earlier this month that it would not raise prices in the U.S. for the next two months, sales performance has been "very strong."
Although Munoz did not comment on what might happen after this marketing program ends, Bloomberg reported that he said Hyundai has no plans to exclude certain models or significantly increase prices.
Regarding the imposition of auto tariffs despite Hyundai's announcement last month of a $21 billion (approximately 30 trillion KRW) investment plan in the U.S., Munoz stated, "We are not trying to move because of incentives or tariffs," emphasizing, "The U.S. is our most important market."
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