- Hyundai will maintain its Manufacturer’s Suggested Retail Price (MSRP) system until June 2, as new tariffs take effect.
- The company manufactures vehicles such as the Santa Fe, Santa Cruz, Ioniq 5, and Ioniq 9 in the U.S., along with producing some portion of the Tucson models destined for the North American market.
- A few days ago, the South Korean car company inaugurated Hyundai Motor Group Metaplant America in Ellabell, Georgia. This facility will manufacture vehicles for Hyundai, Kia, and Genesis brands.
As foreign automakers weighed options following the imposition of the Trump administration's 25% vehicle tariffs—and the announcement of additional reciprocal tariffs against individual countries—Hyundai sought to reassure its customer base.
The car company stated that it will keep the present MSRP system intact from now until June 2 for anyone leasing or purchasing a new Hyundai within this timeframe.
"Given consumer concerns over possible price increases, our aim is to offer them greater consistency in the upcoming months," stated José Muñoz, who serves as both the president and CEO. of Hyundai Motor Company.
Nonetheless, it’s important to recognize that manufacturer suggested retail prices (MSRPs) are one aspect, whereas actual consumer dealership prices can be significantly different. Additionally, the costs of components will likely experience considerable shifts as new tariffs come into effect in May. This applies to all car manufacturers without direct-sales models.
Moreover, dealerships across various brands usually stock up with weeks or even months' worth of inventory on their lots. This inventory isn’t officially under tariff restrictions for now. As such, these vehicles ought to remain unaffected by tariffs in theory; however, it’s uncertain how things will play out when purchasers flock towards cars and trucks that arrived weeks prior, seeking lower prices before the tariff imposition.
Currently, Hyundai manufactures five models in the U.S., which include the Santa Fe, Santa Cruz, and Ioniq 5. The Tucson, however, is produced both in the U.S. and Mexico.
The The Ioniq 9 electric SUV is set to begin production in the USA. As for this season, despite its pricing yet to be disclosed since production has only recently started, deliveries are anticipated to commence within a matter of weeks.
A few days ago, Hyundai formally inaugurated the event with a ribbon-cutting ceremony. The Hyundai Motor Group Metaplant America in Ellabell, Georgia, which started manufacturing the Ioniq 5 last autumn.
The facility in Georgia was built in less than two years and initially had the capability to manufacture up to 300,000 cars each year. Meanwhile, Hyundai Motor Manufacturing Alabama, which began operations in 2005, can turn out close to 400,000 vehicles per annum.
Furthermore, Hyundai has committed a $21 billion investment in the U.S. over the coming three years with the aim of enhancing its manufacturing capacities.
Hyundai’s U.S.-produced models are anticipated to remain unaffected by direct import tariffs. However, over time, secondary impacts such as tariff-related changes in raw material costs and other parts may lead to price adjustments for Hyundais and other vehicles within just a few weeks or months.
"Our MSRP commitment is just one part of our multifaceted effort to provide great vehicles to American consumers, while also supporting hundreds of thousands of jobs and investing billions of dollars in the most important market for our company," Muñoz added.
Currently, Hyundai’s sister company Kia manufactures several electric vehicles in the U.S., such as the EV6 and EV9 models. Additionally, Kia constructs the Telluride and non-hybrid variants of the Sportage within the country. Vehicles not mentioned are assembled in South Korea and Mexico for distribution in the American market.
Could the tariffs increase the preference for American-made products over time? Or will the demand for all vehicles be impacted similarly? Please comment below.
Interested in buying a car? Discover your perfect match on the MSN Autos Marketplace.