Genesis, the luxury vehicle brand of Hyundai Motor Co., accounted for a third of its global sales in the United States last year, with projections that its annual U.S. sales could exceed 80,000 units this year. However, with 70% of its U.S. sales comprising vehicles manufactured in South Korea and exported to the American market, the potential imposition of auto tariffs by former President Donald Trump’s administration poses a significant challenge. Concerns are particularly pronounced as Genesis represents Hyundai Motor Group’s most profitable vehicle lineup.
According to Hyundai Motor and the Korea Automobile & Mobility Association on Mar. 16, Genesis sold 75,003 vehicles in the U.S. last year, an 8.4% increase from 2022. That figure accounted for 32.7% of Genesis' total global sales, which reached 229,532 units. In South Korea, the brand sold 130,674 units, representing 56.9% of its worldwide sales. Combined, the two markets made up 89.6% of Genesis' global volume.
Since entering the U.S. luxury vehicle market in 2016, Genesis has steadily expanded its presence. In 2020, during the COVID-19 pandemic, the brand sold just 16,384 vehicles in the U.S., accounting for 12.4% of its global sales. However, its U.S. sales surged to 49,621 units in 2021 (24.6%), followed by 56,410 units in 2022 (26.2%) and 69,175 units in 2023 (30.7%), marking consistent year-over-year growth.
The prospect of auto tariffs under a Trump administration could pose a significant hurdle for Genesis’ expansion in the U.S. A 25% tariff on imported vehicles would sharply erode the brand’s price competitiveness, potentially disrupting its sales momentum just as it gains traction in the market.
Last year, Hyundai Motor Manufacturing Alabama (HMMA) produced 24,046 units of the Genesis GV70, a sport utility vehicle, while the remaining 50,000 Genesis vehicles sold in the U.S. were imported from South Korea. This put the local production rate at just 30%.
An industry source noted that even when accounting for all Genesis models sold in the U.S., the brand’s total volume remains just one-third of Hyundai’s best-selling Tucson. “For Genesis, which offers a wide range of high-end models, tariffs would be a direct hit,” the source said.
