Hyundai accelerates bet on EVs in China to circumvent tariffs

Hyundai advances with EVs in China, expanding production, launching new models, and seeking to mitigate high tariffs.

Hyundai accelerates bet on EVs in China to circumvent tariffs

Hyundai Motor is expanding its focus on electric vehicles in China to reduce exposure to rising tariffs, aiming to sell more than 40 thousand eco-friendly vehicles this year.

In the production line of the Beijing Hyundai joint venture, the EV target rises to 41,500 units in 2026, while the supply of fuel-powered models is expected to fall by almost 10%.

The company also projects sales of 218,000 vehicles in China this year, an increase of 10.8% compared to 2025, and plans to launch 20 new models in the country over the next five years, including a dedicated electric sedan with mass production scheduled for June.

This shift comes amid a scenario where the passenger car group in China expects an almost 20% drop in combustion vehicle sales and greater price pressure from local EV manufacturers.

Hyundai has also faced significant commercial costs in the last year, while the EV Elexio, developed exclusively for China, is still in the scaling phase.

Source: Korea Herald.

Context and Implications

• Tariff mitigation strategy: Hyundai seeks to strengthen its position in China, reducing sensitivity to external tariffs.
• Joint venture performance: Beijing Hyundai has registered significant losses in recent years, increasing the urgency for operational changes.
• EV Market in China: EV profit margins have fallen and competition with local brands is intense.
• Technological Cooperation: The company has been establishing partnerships with tech giants to strengthen software and vehicle ecosystems.

How do you view this move? Does Hyundai's bet on EVs in China help circumvent tariffs, or do you believe other brands might dominate the segment's future here? Leave your comment below.