Will the Hyundai Motor Group $HYUD (-2,6%) even benefit from Donald Trump in the end ?!?

Hyundai Motor Group has significantly expanded its production capacity in the United States with the recent start-up of its meta plant in Georgia. This strategic move, which began in October, has increased the Group's production capacity in the US to approximately 1 million units per year. This development enables Hyundai Motor and its subsidiary Kia to potentially mitigate the impact of the universal tariff proposed by US President-elect Donald Trump and benefit from favorable economic policies.

Industry insiders suspect that some of Trump's measures could benefit Hyundai Motor and Kia. In a speech in October in the Detroit area, Trump announced plans to push for a 100 percent tax deduction on interest paid on loans for cars with internal combustion engines. With local installment interest rates ranging from 7% to 11%, this policy could significantly reduce financing costs for consumers and potentially boost sales of internal combustion engine vehicles. Although Hyundai Motor Group ranks second in the US electric vehicle market, 75-80% of its sales still come from internal combustion engine vehicles. Thus, reduced rates could offset the impact of the universal tariff.

Last year, the Hyundai Motor Group sold approximately 1.65 million units in the US. With local plants operating at full capacity, this allows the Group to produce about 60% of its US sales volume domestically, avoiding tariffs and reducing shipping costs. This local production capacity is particularly important in light of President-elect Trump's proposed universal tariff of 10% on imported goods.

In addition, the capacity at the Georgia meta plant is to be increased from 360000 to 500000 units produced at the beginning of 2025, meaning that around 70% of last year's sales figures would already be produced domestically.

So it remains exciting, but one thing is certain in my opinion, Hyundai will continue to grow in the future thanks to innovation, technological openness and strategic action 💪