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Hyundai, Kia cars discounted in some countries to fend off sluggish sales

Published: 26 Jun. 2025, 17:13 Updated: 30 Jun. 2025, 16:37

Newly manufactured Tucson automobiles stand in a parking lot awaiting distribution at Hyundai Motor Manufacturing Czech plant in Nosovice, Czech Republic, on June 2, 2025. [EPA/YONHAP]

As tariffs on vehicles imported into the United States weigh on the auto industry, Hyundai Motor and Kia are ramping up global promotions this month in a bid to boost sales. The move is seen as a pre-emptive strategy to offset expected declines in U.S. demand due to future price hikes and to maintain global market share.

As of Wednesday, Hyundai Motor was running promotions across its six overseas business regions' dealership — Asia-Pacific, Europe, the Middle East, Africa, North America and Central and South America — with discounts of up to 23 million won ($16,900) depending on the country. The campaign primarily targets popular SUVs like the Tucson and Santa Fe, as well as EVs such as the Ioniq 5 and Ioniq 6.

In Poland, for example, the 2024 Tucson is being offered with a discount of 30,000 zloty ($8,200), while in Serbia, the Ioniq 5 and 6 are discounted by as much as 15,000 euros ($17,400). Discounts also reach 12 million won in Thailand and 17.8 million won in Chile.

Following Washington's decision on April 3 to impose a 25 percent tariff on imported vehicles to the United States, Hyundai and Kia froze prices through June 2 and have since extended the freeze to July 7.

The companies are focusing on pre-tariff inventory — vehicles that were manufactured or cleared customs before the tariffs went into effect. However, if the tariffs persist, a price increase after July 7 is widely expected. Toyota, for instance, has already announced price hikes in the United States starting in July.

A logo sits on display above the headquarters of Hyundai Motor Manufacturing Czech plant in Nosovice, Czech Republic, on June 2, 2025. [EPA/YONHAP]

Any price increases are likely to affect sales. Last year, one out of every four vehicles sold by Hyundai and Kia — or 23.6 percent — was sold in the United States. Sixty percent of those were exported from Korea. This could lead to a drop in sales in the U.S. market, a key revenue source.

In the Korean market, Hyundai launched a new promotion dubbed “H-Super Save” in May, offering discounts ranging from 1 million won to 6 million won on popular models like the Tucson, Grandeur and Santa Fe. The company also began publicly tracking inventory levels by model each day to further stimulate sales.

Despite these efforts, a clear rebound in sales has yet to materialize in the European market. Wholesale sales at Hyundai’s Czech plant — which serves as its European production hub — dropped for three consecutive months from March to May, falling from 27,109 units in March to 25,495 in April and 21,909 in May.

This photo provided by Hyundai shows the 2025 Ioniq 6. The distinctively styled Ioniq 6 is electric and boasts an EPA-estimated range of up to 342 miles. [HYUNDAI MOTOR AMERICA]

This photo provided by Hyundai shows the 2025 Kona. The Kona offers an abundance of both standard and optional features as well as a roomy interior. [HYUNDAI MOTOR AMERICA]

Kia has seen a similar trend. Its exports to continents outside the United States dropped from 61,822 units in March to 53,081 in May. Although total vehicle sales in Europe rose 1.9 percent year-on-year in May, Hyundai and Kia saw sales decline by 2.5 percent and 5.6 percent, respectively, during the same period.

Hyundai is maintaining a wait-and-see approach as it monitors Korea-U.S. tariff negotiations. To that end, the company has redirected all output from its Alabama plant to the U.S. domestic market. In March, the plant exported 3,570 vehicles to nearby countries, but that number plummeted to just 14 in May.

“Cost pressures from the tariffs will begin to intensify in the second half of the year, likely leading to vehicle price increases," said Kim Kyung-yoo, a senior research fellow at the Korea Institute for Industrial Economics and Trade. "Since automakers can’t pass on the entire cost to consumers, profitability will inevitably suffer.”

Kwon Yong-joo, a professor of automotive transportation design at Kookmin University, also warned, “Hyundai and Kia may be holding out for now, but if local production doesn’t expand and tariff negotiations between Korea and the United States stall, a loss in market share will be unavoidable.”

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY LEE SU-JEONG, OH SAM-GWON [[email protected]]