Hyundai in Talks to Supply Commercial EVs to GM Amidst Policy Uncertainty
Hyundai Motor, South Korea's largest automaker, has initiated discussions with General Motors (GM) to provide commercial electric vehicles (EVs) to its American counterpart. This negotiation aligns with Hyundai's anticipation of decelerated sales growth this year due to waning demand.
The automaker has highlighted potential policy risks in the United States under the Trump administration's advocacy for import tariffs. However, Hyundai believes the impact will primarily affect Japanese manufacturers, given their substantial production facilities in Mexico and Canada. Hyundai intends to mitigate the potential consequences by further localizing production in the United States and incorporating hybrid vehicle manufacturing into its Georgia plant.
Hyundai forecasts modest revenue growth of 3.0% to 4.0% in 2025 compared to 7.7% previously anticipated. The company expects an operating margin between 7.0% and 8.0%. Concerns include market slowdowns, declining EV demand, and economic volatility, coupled with the possibility of EV tax credit eliminations under the Trump administration.
Despite ongoing uncertainties, Hyundai's October-December operating profit reached 2.8 trillion won ($1.95 billion), albeit falling short of analyst estimates. The company is exploring partnerships with Waymo for the supply of Ioniq 5 EVs in North America and beyond. Hyundai is also developing autonomous technology through its Motional unit, aiming to commercialize robotaxis next year.
Hyundai acknowledges the potential for an initial public offering (IPO) for its humanoid robot division, Boston Dynamics, but does not anticipate any immediate action in this regard.