Hyundai CEO Does Not Expect Car Prices To Rise Overnight Due To Trump Tariffs: But Retail’s Skeptical

Korean automaker Hyundai Motor Co.’s (HYMTF) CEO José Muñoz expects car prices to remain relatively steady over the coming months despite cost increases owing to the Trump administration’s tariffs, according to a Bloomberg interview.

“I don’t expect to see a huge increase overnight,” Muñoz told Bloomberg. “The market will decide.”

Bloomberg noted that the comments contrast with the fear among car buyers and analysts about a possible surge in auto prices owing to the tariffs.

Wedbush analyst Dan Ives warned last month that if the tariffs remain in their current form, they could drive up the average price of cars by $5,000 to $10,000.

Trump’s 25% tariffs on cars imported into the U.S. came into effect earlier this month. Tariffs on auto parts are expected to follow no later than May 3.

According to Munoz, the cost from tariffs could fall disproportionately on high-end models as higher-end vehicle owners are less affected by price hikes.

“I don’t think you’re going to see prices at the entry level go up $3,000, $4,000,” he said. “Those customers are very sensitive to price. If you do that then maybe they won’t buy the cars.”

Hyundai pledged to hold prices steady until June 2 earlier this month. The CEO said this has helped the company have “very strong” sales in April.

Munoz did not say what would happen after June 2 but noted that the company had no plans to stop models or substantially raise prices.

“If we have the opportunity to take maybe some reduced incentives, increase price here or there, we will do,” he said, adding that there is more stress on parts manufacturers than car manufacturers.

Last month, Hyundai announced a $21 billion investment in the U.S., including a $5.8 billion Hyundai Steel plant in Louisiana.

On Stocktwits, retail sentiment around Hyundai fell from ‘neutral’ to ‘bearish’ territory over the past 24 hours while message volume remained ‘low.’

HYMTF stock is down by about 8% year-to-date and over 10% over the past 12 months.

Also See: Barclays Downgrades US Auto Sector Owing To Trump’s Tariffs: Retail Sentiment Around GM Takes A Plunge

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