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Despite facing headwinds from the US trade protectionism policies, Toyota and Hyundai remain unwavering in their priority: the number one market is still the US.
According to Reuters, Toyota, Hyundai, and other Asian automakers like Honda and Nissan continue to view North America as their most crucial revenue generator. For Toyota and Hyundai, this region accounts for at least 40% of their global revenue.
With China, the world’s largest auto market, being dominated by domestic electric vehicle brands like BYD, the US emerges as a more stable choice for established Japanese and Korean automakers.
Analysts suggest that brands with healthy profit margins and a diverse range of hybrid offerings, such as Toyota, Hyundai, Kia, and to some extent Honda, may be better equipped to weather the tariffs and even gain market share from weaker rivals like Nissan.
At an event in Tokyo last week, Mazda’s executive officer, Noriyuki Takimura, commented: “We are facing an increasingly harsh and unpredictable environment, starting with US import tariffs. Mazda will balance defensive measures such as cost-cutting with offensive strategies like refreshing our product portfolio.”
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The US market remains the preferred destination for many Asian automakers. Image: Reuters. |
Four industry leaders, including two from Hyundai and two from Japanese automakers, revealed that they have no plans to scale down their US operations, despite acknowledging the challenges ahead. All four requested anonymity.
Toyota sold 2.3 million vehicles in the US in 2024 (including Lexus), accounting for over 20% of its global production. In terms of revenue, North America trails only the domestic Japanese market.
For Hyundai, North American revenue last year hit its highest level in almost a decade. According to Kim Changho of Korea Investment & Securities, about 60% of the company’s profits come from the US market, thanks to higher selling prices.
Once dismissed in the US during the 1980s due to poor quality, Hyundai has invested extensively in the region over the past decade, especially after tensions with China led to a loss of market share in the populous country.
“It took years of effort, but our brand has finally gained recognition from American consumers. Therefore, we cannot afford to let go of this market,” said an internal Hyundai executive.
Engaging Reads for Your Journey
Our Automotive section presents a selection of captivating books with diverse themes. During those restful moments on your travels, let these pages be your delightful companions.
The All-New Kia Seltos: Unbelievably Affordable in China
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Toyota is Developing a Compact Hybrid Pickup Truck, Launching Next Year
Toyota is reportedly developing an all-new hybrid pickup truck, slated for release in 2026.
Toyota Land Cruiser 300: Surpassing 100,000 Sales in 2024
Despite not being officially sold in North America, the large SUV Toyota Land Cruiser 300 witnessed impressive global sales in 2024, with over 105,000 units sold worldwide, as per analytics expert Felipe Munoz’s insights.
China’s Passenger Vehicle Sales Reach 10.89 Million in H1
The Chinese automotive market witnessed steady growth in the first half of 2025, with a significant milestone achieved: over half of the vehicles sold were new energy vehicles (NEVs). This marks a pivotal moment for the global electric vehicle industry, showcasing China’s commitment to sustainable transportation and a promising future for automakers worldwide.
The Evolution of Automotive Preferences: When Korean Cars Overtake Japanese Rivals in Vietnam
The sales race between Korean and Japanese cars is losing its luster, as the Vietnamese market embraces an influx of new automotive brands.
