Hyundai Motor Company's U.S. subsidiary extended existing vehicle discount benefits for about two months until September. Although the U.S. imposes a 25% tariff on imported vehicles, it seems to have determined that an aggressive pricing strategy is necessary to maintain market share.
According to the automobile industry on the 9th, Hyundai Motor Company's U.S. subsidiary extended its official vehicle discount policy, originally set to end on the 7th (local time), to September 2. Initially, the subsidiary had planned to end this policy on June 2 but postponed it by a month and has now extended the deadline again.
There are a total of 19 vehicle models eligible for the discount. The discount benefits vary by vehicle model. For cash purchases, the Santa Fe and Santa Fe FE hybrids offer discounts of $3,500, the Palisade $2,750, the Tucson $1,750, and the Tucson hybrid $1,250. The discount rates are approximately 3% to 10%.
Electric vehicles have even greater discount benefits. The Ioniq 5, Ioniq 6, Ioniq 9, and Kona Electric can be purchased with a discount of $7,500 each. This results in prices that are 12% to 22% lower than the suggested retail price.
The Donald Trump administration imposed a 25% tariff on imported vehicles starting in April. Some automakers raised their prices, while Hyundai Motor Company managed to hold on with inventory accumulated before the tariff was applied. Although this inventory was nearly depleted by the end of last month, the company has defended its market share by maintaining sales prices without raising them and even offering discounts.
Hyundai Motor Group achieved its highest-ever sales in the U.S. for the first half of this year, selling 893,152 units, an increase of 9.2% compared to the same period last year. It is reported that Hyundai Motor Group's market share in the U.S. has surpassed 11% for the first time.
However, this policy could increase Hyundai's financial burdens. According to financial information firm FnGuide, analysts estimate that Hyundai's operating profit will decline by 7.7% this year compared to last year, with the U.S. tariff burden being a key factor. Hanwha Investment & Securities expects Hyundai to face a tariff burden of 2.6 trillion won this year.