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Hyundai Motor Plans Boost in U.S. Production

by Team Lumida
September 18, 2025
in Markets
Reading Time: 3 mins read
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Key Takeaways

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  • Hyundai raised 2025 revenue growth target to 5-6%, up 2 percentage points, but lowered operating profit margin to 6-7% due to new U.S. tariffs
  • The company plans to produce over 80% of U.S.-sold vehicles domestically by 2030, investing $11 billion in U.S. production capacity and robotics
  • Hyundai will add 200,000 units to Metaplant America capacity by 2028, creating 3,000 jobs, with eventual goal of 500,000 total units
  • Recent detention of 300+ Korean workers at the Georgia plant will delay construction by 2-3 months as positions are refilled
  • Global production target increased by 1.2 million units by 2030, with facilities expanding in India (250,000 units) and Korea (200,000 units)
  • Electric vehicles expected to comprise 60% of 5.55 million global sales by 2030, reaching 3.3 million EV units
  • Company will expand hybrid lineup to 18+ models by 2030 and introduce software-defined vehicle platform Pleos Connect in Q2 2026

What Happened?

Hyundai Motor increased its revenue outlook while acknowledging margin pressure from U.S. tariffs, announcing major expansion plans for American production. The Korean automaker detailed a comprehensive strategy to localize manufacturing and reduce tariff exposure, despite recent setbacks from immigration enforcement at its Georgia facility that will delay construction timelines.

Why It Matters?

Hyundai’s aggressive U.S. localization strategy demonstrates how automakers are adapting to protectionist trade policies while positioning for the EV transition. The $11 billion investment commitment signals confidence in the American market despite regulatory challenges. However, the immigration raid highlights operational risks for foreign manufacturers relying on international workers for specialized construction projects.

What’s Next?

Monitor construction progress at the Georgia Metaplant and whether worker shortages continue affecting timelines. Watch for similar localization announcements from other foreign automakers facing tariff pressures. Investors should assess Hyundai’s ability to execute its ambitious production targets while managing margin compression from increased domestic manufacturing costs.

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Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
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