Hyundai Motor in GM tie-up talks, sees revenue growth slowing in 2025

SEOUL, Jan 23 (Reuters): Hyundai Motor (005380.KS) said on Thursday it is in talks with General Motors (GM.N) to supply commercial electric vehicles to its US peer, as it expects sales growth to halve this year due to softening demand.

The South Korean automaker said discussion with GM involves various areas of cooperation including joint parts purchasing and a tie-up in passenger vehicles. They aim to sign binding deals on commercial EV supply and auto part purchases this year, Hyundai said.

The talks come as global automakers brace for policy uncertainty in the US, the world’s second-largest auto market that threatens to dampen demand, as US President Donald Trump said this week he could impose 25 percent import tariffs on Canada and Mexico from February 1.

“We expect more business uncertainties this year than ever before due to potential policy changes not just in the home market but also in the US, while there will be tougher emission rules in Europe,” Hyundai Chief Financial Officer Lee Seung Jo told analysts.

Hyundai, which together with affiliate Kia (000270.KS) is the world’s third-biggest automaker by sales, on Thursday forecast 2025 revenue would grow 3.0 percent to 4.0 percent this year, versus 7.7 percent a year earlier. It expects its operating margin to be 7.0 percent to 8.0 percent, from 8.1 percent in 2024.

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North America and South Korea are Hyundai and Kia’s two biggest markets.

Hyundai also warned of uncertainties, citing a slowdown in major markets, slowing demand for electric vehicles and macroeconomic volatility.

Trump said this week he would consider scrapping tax credits for purchases of electric vehicles.

Hyundai reported operating profit of 2.8 trillion won ($1.95 billion) for October-December as it spent more on promotions in a slowing car market.

That was lower than a 3.2 trillion won average of 24 analyst estimates compiled by LSEG SmartEstimate, which is weighted toward estimates from the more consistently accurate analysts