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Hyundai Motor's office building in Yangjae-dong, Gangnam-gu, Seoul. (Photo=Yonhap News) |
[Alpha Biz= Kim Jisun] Hyundai Motor Group and U.S.-based General Motors (GM) are set to form a comprehensive partnership involving joint production at their factories worldwide. Through this production cooperation, Hyundai Motor (KRX: 005380) will be able to significantly expand its U.S. production, helping the company mitigate the impact of potential tariff hikes by former U.S. President Donald Trump.
Meanwhile, Chinese automakers such as BYD are aggressively expanding into overseas markets after securing over 60% market share in their home market, now the world’s largest automotive market.
Chinese carmakers, which accounted for approximately 21% of the global market last year, are projected to increase their market share to 33% by 2030. Leveraging advanced autonomous driving technology and electric vehicle (EV) capabilities, Chinese brands are making inroads not only into neighboring ASEAN (Association of Southeast Asian Nations) markets but also into India and Europe, intensifying competition in the global auto industry.
As market competition heats up, major automakers are finding it increasingly burdensome to invest trillions of won in building new factories. This is partly because many existing plants are not operating at full capacity. Adding to the uncertainty, former President Trump has warned that he could impose a 25% tariff on imported cars in the U.S., the world’s second-largest auto market, further driving automakers into challenging terrain.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
