Hyundai’s Chung Euisun sees challenging year amid trade tensions

Hyundai Motor Company executive chair Chung Euisun has warned that the global automotive industry faces a difficult year ahead, as geopolitical tensions, trade disputes and intensifying competition weigh on profitability, while urging the South Korean carmaker to accelerate its push into artificial intelligence.

In a New Year address, Chung said geopolitical crises could disrupt operations in certain markets and, in some cases, lead to temporary suspensions of trade. He added that rising global trade frictions and heightened competition were likely to constrain margins across the industry.

Hyundai has been particularly exposed to US trade policy. A 15% tariff on South Korea–made vehicles imposed under President Donald Trump has dealt a significant blow to the country’s largest automaker. The company has estimated the impact at nearly Won1.8tn ($1.2bn) in the third quarter alone.

Operational challenges have also emerged in the US, where construction at a Hyundai–LG Energy Solution battery plant is expected to be delayed by two to three months following an immigration raid at the site in September, according to the company.

Against this backdrop, Chung acknowledged that Hyundai is trailing some rivals in the race to deploy artificial intelligence across its operations. He called for broader collaboration with external partners to strengthen the group’s AI capabilities, describing technological competitiveness as critical to navigating the industry’s next phase.