(source : ANI) ( Photo Credit : ani)
Japanese cars might soon undercut South Korean rivals like Hyundai in the US market, thanks to a big drop in tariffs. Starting Tuesday, the US will slash duties on Japanese autos from 27.5% to just 15%. Meanwhile, Hyundai and Kia vehicles face a steep 25% tariff, with no quick fix in sight due to ongoing talks between Seoul and Washington.
A report from Pulse, the English arm of Korea’s Maeil Business Newspaper, highlights how this could flip the script. Right now, the Kia Sportage Hybrid sells for $30,290 in the US, while the Toyota RAV4 Hybrid goes for $32,850. But if companies pass on the full tariff costs—no dodging that 25% for Hyundai or the new 15% for Toyota—the Sportage would jump to $37,863. The RAV4? Just $37,778. Suddenly, the Japanese option looks like a steal.
Hyundai has tough choices ahead. They can’t easily avoid these tariffs because most of their hybrid electric vehicles (HEVs) come from factories in Korea. Sure, they’re building a new HEV production line at their massive Hyundai Motor Group Metaplant America (HMGMA) in Georgia, but it won’t be ready until next year at the earliest. This could hit Hyundai’s US HEV sales growth hard.
Don’t get us wrong—Hyundai and Kia have been crushing it lately. Their US HEV sales skyrocketed from 90,614 units in 2021 to 124,191 in 2022, then 183,541 in 2023, and a whopping 222,486 in 2024. From January to August this year, they sold 198,807 units, up 47.9% from last year. But industry experts say Hyundai can’t keep prices low forever if those punishing tariffs stick around. They’ll have to eat into profits or risk losing buyers.
The competition is fierce too. According to Wards Intelligence, Toyota leads the US HEV market with 51.1% share from January to August 2025, followed by Honda at 17%. Hyundai and Kia sit third with 12.3%.
Adding to the headaches, Hyundai faces battery supply snags after a US immigration raid at a Georgia plant they co-own with LG Energy Solution Ltd. It’s a rough patch for the Korean auto giant as Japanese brands like Toyota gear up to grab more market share.
Stay informed on all the latest news, real-time breaking news updates, and follow all the important headlines in world News on Latest NewsX. Follow us on social media Facebook, Twitter(X), Gettr and subscribe our Youtube Channel.
