How Hyundai Is Tackling Tariffs and Leading Electrification

Hyundai electrification gains momentum in the U.S. with major investments in jobs, local manufacturing, and hybrid growth defying tariffs and reshaping the market.

Hyundai’s hybrid and EV strategy meets American-made muscle in an era of tariffs

Olabisi Boyle, the senior vice president of product planning and mobility strategy for Hyundai Motor North America gave an update on how Hyundai is tackling the current market. In a year when automakers are watching the clock on EV tax credit expirations and tariffs loom over global supply chains, Hyundai has quietly been building a domestic juggernaut. With over $21 billion committed to American soil in 2025 alone, and hybrid sales surging 35% since 2020, Hyundai’s no longer playing catch-up. It’s dictating the terms.

You may also like: EV Tax Credits Expire September 30: What You Need to Know

Why does this matter right now?

Let’s start with scale. Hyundai’s retail sales have grown from 559,000 in 2019 to 742,000 in 2024, with an eye on cracking 1.2 million in the near future. While the industry tiptoes around electrification and tariffs, Hyundai is deep in the trenches investing, localizing, and building. In the first half of 2025 alone, sales were up 10%, despite economic turbulence and shifting regulations.

Tariffs? Hyundai’s response isn’t a complaint. It’s construction. $12.6 billion already anchors the brand from Savannah, Georgia to Montgomery, Alabama, supporting 19,000 American jobs. In 2025, they’re going even further: $9 billion to increase sales capacity, $6 billion for local supply chain resilience, and $6 billion for partnerships from EV infrastructure to energy networks.

Hybrids have emerged as Hyundai’s not-so-secret weapon. In just five years, hybrid vehicles have gone from 2.4% to 19% of the brand’s U.S. retail mix. It’s not just growth it’s dominance. And when the electrified Ioniq 9 lands next to the ICE and hybrid Palisade in the three-row SUV segment, Hyundai will offer something its rivals can’t: real choice.

You may also like:Which Automakers Are Building U.S. Factories to Dodge Trump’s Tariffs?

How does it compare to rivals?

While some competitors are scaling back EV production or holding off on localized assembly, Hyundai is doubling down domestically. Toyota might lead in hybrid history, but Hyundai’s rate of HEV growth since 2020 is outpacing the field. Ford and GM are tightening belts and shifting electric strategies, but Hyundai’s marching forward with manufacturing muscle.

In safety, Hyundai holds more Top Safety Pick+ ratings than anyone in the business. Twelve Hyundai and Genesis vehicles now wear TSP or TSP+ badges. It’s a data point that speaks volumes to families shopping for safe, reliable electrified transport in a time of tech transition.

Hyundai’s also cleaning up in accolades: a TIME 2025 Most Influential Company nod, five models on the “American Made” index, and the Santa Cruz still topping midsize pickup charts. Add second place in J.D. Power’s Initial Quality Survey, and the case strengthens: this isn’t a fluke. It’s a campaign.

You may also like: How Hyundai and Kia Are Redefining EVs and Beating Rivals in 2025

Who is this for, and who should skip it?

If you’re a buyer who wants space, size, and value but doesn’t want to compromise on electrification or safety Hyundai has you covered. The Palisade remains the anchor for families who need flexibility, now available in ICE and HEV form. And for those ready to ditch the pump? The Ioniq 9 offers a pure EV alternative without sacrificing cargo room or comfort.

Dealers and customers alike are feeding directly into the design process. Hyundai’s commitment to real-world feedback rather than tech-for-tech’s-sake gimmickry has paid off. Its flexible manufacturing means it can pivot with market demands, offering ICE, HEV, and EV drivetrains from the same platform, with no spatial penalty.

Those looking for luxury badge appeal or high-performance halo cars might still turn to the Germans or Cadillac’s Blackwing lineup. But for mainstream buyers wanting forward-thinking engineering wrapped in real-world practicality, Hyundai’s ticking every box.

You may also like: Hyundai’s Savannah Surge: How a Korean Giant is Quietly Rewriting America’s Automotive Future

What’s the long-term significance?

This isn’t just a story of EVs. It’s about building an auto economy that’s resilient in the face of policy shifts. By anchoring billions in U.S. jobs and infrastructure, Hyundai’s insulating itself from trade volatility and putting its foot on the accelerator where others are easing off.

And with the federal EV tax credit program set to expire September 30, 2025, Hyundai’s diversified portfolio offering hybrids, plug-ins, and full EVs isn’t just smart. It’s future-proof.

Like what you’ve read? Stay in the driver’s seat with more insider automotive insights. Follow @NikJMiles and @TestMiles for stories that go beyond the press release.