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Hyundai has upheld its $26bn investment pledge in the US in the wake of a large-scale immigration raid on its facilities in Georgia as the South Korean carmaker pledged to expand its hybrid offerings in response to Donald Trump’s anti-EV policies.
The arrests of hundreds of South Korean workers at the Hyundai-LG battery plant in Georgia had prompted warnings from South Korean President Lee Jae Myung that companies would be “more hesitant” about investing in America.
Hyundai on Thursday said it was still committed to making 80 per cent of the vehicles sold in the US locally by the end of the decade.
However, with sales of battery-powered electric vehicles expected to slow down in the US after Trump cancelled EV incentives, Hyundai said it now planned to introduce more than 18 hybrid models as part of its target to sell 3.3mn electric and hybrid models while dropping its previously stated target of 2mn EV sales by 2030.
The group, which also makes the Kia and Genesis brands, lowered its operating profit margin for 2025 to a range of 6 to 7 per cent, down one percentage point from its earlier forecast, due to the impact of higher US tariffs on cars imported from South Korea. It will aim for a range of 8 to 9 per cent by 2030.
“Hyundai is facing a triple whammy in the US as it has to grapple with a tariff gap with Japanese rivals, the absence of tax credits for EV purchases and the delayed completion of its battery joint venture,” said Lee Hang-koo, a researcher at the Korea Automotive Technology Institute.
“The absence of tax credits will make EV sales in the US more difficult. It is more painful for Hyundai because it is the area where Hyundai had an edge over Japanese rivals,” he added.
Lee expected Hyundai to increase US investments to boost capacity there and modernise its US plants. He said the 25 per cent tariff on Korean auto exports was likely to be maintained for the time being with talks between Seoul and Washington hitting an impasse over details of Korea’s $350bn investment pledges.
Hyundai had been praised by investors for its successful transition to EVs while increasing global sales of hybrid and internal combustion engine cars in recent years.
But US tariffs have hurt its performance with its second-quarter profit falling 22 per cent from a year earlier.
The group’s chief executive José Muñoz has previously said the raided battery plant, which was under construction, now faced a delay in its opening of at least two months. It was previously expected to be operational before the end of the year.
On Thursday, Hyundai said its EV plant in Georgia will add production capacity of 200,000 units by 2028 following a $2.7bn investment that will create 3,000 new jobs.
“In an industry facing unprecedented transformation, Hyundai is uniquely positioned to win,” Muñoz said.
