Bloomberg said Hyundai Motor Company is struggling to raise the price of a car in the United States. This is due to the recent movement of the US to impose new tariffs on imported vehicles, and Hyundai seems to be difficult to avoid this impact. HYUNDAI, which has established a fairly large position in the US market, has to decide how to deal with tariffs. This news shows how sensitively the automotive industry responds to changes in the global trade environment.
As the United States strengthens tariffs to protect the domestic automobile industry, it is likely that Asian manufacturers such as Korea and China will be hit. Hyundai produces some cars in the United States, but many models are still made in Korea and imported from the United States. So if tariffs rise, profits will be reduced. So Hyundai seems to be planning to keep profit even if the price is raised. But this is the best thing.
If the price hike becomes a reality, US consumers may have to pay more money when buying a Hyundai car. Since Hyundai has increased its competitiveness with a low-priced vehicle, I am worried about how price raising will affect the brand image. Nevertheless, Hyundai will try to catch customers with high quality and technology. In particular, the strategy to survive the market by increasing the lineup of electric cars is also noticeable. It seems to be more watching whether consumers will accept the price increase.
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Industry people say that Hyundai's decision can also affect other companies like Toyota and Honda. Everyone has faced similar tariffs, so it is possible to respond by raising prices or changing production methods. This situation removes how complex the global supply chain is and how big the trade policy is. Hyundai may try to increase production in the United States or reduce tariff burden in other ways.
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In the end, Hyundai's concern shows that the automotive industry faced a new challenge. Target policy changes make manufacturers again weaving costs and strategies, and even the aftermath of consumers. Hyundai will try to get through this difficulty with quality and innovation, but market responses and competitors' movements will be important. It is worth noting how the trade relationship between the United States and Asia will be solved and where the automotive market will be.
