Hyundai to launch 42 new cars to cope with Trump tariffs, EV slowdown

Hyundai Motor Group, the world’s third-largest automaker, plans to unveil 42 new models, including hybrids of existing cars, next year to cope with the triple whammy of US President Donald Trump’s tariffs on imported automobiles, the prolonged weakness in the electric vehicle sector and the global economic slowdown.

The leading South Korean automaker is set to unveil 21 new models from Hyundai Motor Co., 14 from its affiliate Kia Corp. and seven from Genesis, the luxury brand of Hyundai Motor Co., according to the group’s product development plan obtained by The Korea Economic Daily on Sunday.

Genesis plans to mass-produce its first full-size electric sport utility vehicle, the GV90, which will only be available in the electric version, from June 2026.

The group was scheduled to introduce 28 new models this year.

Such aggressive plans came as the global automakers faced the growing uncertainties with the US’ 25% tariffs on all imported cars, which went into effect on April 3, although Trump hinted that he might temporarily relieve the auto industry from “permanent” tariffs.

The duties are expected to increase parts costs, production expenses and car prices to hurt demand.

Hyundai Motor Group aims to deal with the issue by rolling out new models.

HYBRIDS

The conglomerate plans to add hybrid trims to the existing six vehicles, including Genesis models, to accelerate growth in cars with an internal combustion engine by adding one or more electric motors.

That will raise the group’s hybrid lineup to 20 vehicles from the current 14 models, with eight from Hyundai Motor Co. and six from Kia.

Hyundai Motor Co., South Korea’s top automaker, is poised to introduce hybrid models of the mid-size luxury sport utility vehicle (SUV) Genesis GV80 and the GV80 Coupe in September 2026 and the G80 sedan in December.

The company is also set to unveil the compact luxury SUV Genesis GV70’s extended-range electric vehicle (EREV), which combines an electric motor with a petrol or diesel engine. This hybrid vehicle is designed to provide a driving range of more than 900 kilometers with a single charge, much longer than traditional EVs.

The Genesis aims to boost its momentum in the US with those new hybrids. The premium brand sold 75,003 vehicles in the world’s second-largest auto market last year, or 32.7% of its total global sales of 229,532 units.

Kia, South Korea’s No. 2 carmaker, plans to introduce the hybrids of the compact SUV Seltos’ next-generation model in January 2026 and the large SUV Telluride the following month.

Hyundai Motor Co. and Kia reported record sales last year, with sales of the group’s hybrids up 30.1% to 904,000 units in 2025.

The auto conglomerate’s EV sales tumbled 22.2% to 397,000 units, on the other hand.

SMALLER, CHEAPER EVS

Hyundai Motor Group plans to focus more on smaller and cheaper EVs, given the protracted slowdown in the sector.

Hyundai Motor Co. is developing a small electric hatchback codenamed BJ1 for launch in August next year.

The company will also start mass production of the electric trim of the supermini hatchback i20, which has been sold in some markets such as Europe and India, to export to South America in the first half of 2026.

Kia is set to manufacture its entry-level electrified model EV2 in February 2026 and in April introduce the electric version of the subcompact crossover SUV Syros, which was launched in India in January this year.

In China, Hyundai Motor Co. plans to launch eight models by next year to recover its business in the world’s largest auto market.

Beijing Hyundai Motor Co., a joint venture between Hyundai Motor Co. and China’s BAIC Motor Corp., is scheduled to unveil an all-electric vehicle this August. Kia introduced the EV5, its first China-made all-electric vehicle that the company plans to sell globally, in 2023.

BEST SELLERS

Hyundai Motor Co. is set to launch restyled models of its best-selling cars. It plans to introduce the next generation models of the compact SUV Tucson, which was the No. 1 model in the US last year with sales of 206,126 units, and the compact sedan Elantra, the second-best seller.

Those models will also be available in hybrid trims.

Hyundai Motor Co. also plans to unveil facelifts of famous models such as the large sedan Azera, the mid-size SUV Santa Fe and the Genesis G90.

The company will unveil the next-generation model of the subcompact crossover SUV Bayon late next year for markets such as India and Europe, where small car demand is strong.

Write to Gil-Sung Yang, Bo-Hyung Kim and Jung-Eun Shin at vertigo@hankyung.com
 
Jongwoo Cheon edited this article.