Seoul, Feb 5: Hyundai Motor Group is expected to be among the least affected global automakers from the United States’ plan to levy a 25 percent tariff on goods from Mexico, according to market watchers on Wednesday.
Major automakers with production bases in Mexico include General Motors (GM), Ford, Toyota, Nissan, Volkswagen, Honda and Stellantis, all of which have significant exports to the U.S., according to industry data.
Last year, GM led Mexican exports to the U.S. with 712,000 vehicles, followed by Ford and Nissan, with 358,000 units and 315,000 units, respectively, reports Yonhap news agency.
Volkswagen came fourth with 287,000 units shipped to the U.S. from Mexico, trailed by Toyota and Honda with 228,000 and 211,000 units, respectively.
Hyundai Motor Group’s exposure to Mexican production remains relatively minimal, with the manufacturing plant for Kia in Nuevo Leon having shipped 151,000 vehicles to the U.S. in 2024.
Market analysts said the U.S. tariffs on Mexico could increase competitors’ prices, offering Hyundai Motor Group an opportunity to gain market share in the U.S.
“Out of the 17 million vehicles sold annually in the U.S., 2.8 million come from Mexico, accounting for 16.5 percent of imports,” Yoo Ji-woong, an analyst at Daol Investment & Securities, said.
Yoo said Hyundai Motor Group has the lowest production dependence on Mexico among global automakers, which could translate into competitive advantages. Shinyoung Securities echoed such a view in a report.
“Hyundai Motor Group faces the least tariff-related risk among traditional automakers. If competitors’ vehicle prices rise due to tariffs, the group could capture part of the market through price advantages,” it said.
South Korean conglomerates operate more than 200 business entities in Mexico and Canada facing heavy tariffs by the US government, possibly from next month.
In its survey of 88 Korean conglomerates, local corporate data firm Korea CXO Institute found 25 of them operated a combined 201 subsidiaries in the two countries as of the end of 2024. (With inputs from IANS)