President Munoz: "Tucson Holds Infinite Potential... Domestic Struggles Due to Strike Impact"

"The All-New Tucson" World Premiere Media Briefing

Munoz: "Tucson Secures Price Competitiveness with High Residual Value"

"Expecting Greater Appeal to Young Consumers and Expansion of Hybrid Lineup"

Acknowledgment of Insufficient Electrification Response in China

Localization and Export Hub Transformation Underway

Jose Munoz, President of Hyundai Motor Company, stated that the Tucson has limitless sales growth potential and announced plans to leverage the company’s three production sites in Korea, the United States, and Czechia to meet global demand. Regarding the sluggish performance in the domestic market, he cited supply disruptions caused primarily by labor union strikes as the main reason. For the Chinese market, he presented a strategy to expand the hybrid and electric vehicle lineup in order to regain competitiveness.

At the "The All-New Tucson" World Premiere Media Briefing held in New York, USA, on October 1 (local time), President Munoz said, "The Tucson is a car with infinite potential," and added, "I don't think there is a sales limit." Attendees included President Munoz, Sangyeop Lee, Vice President in charge of Hyundai Genesis Global Design, Jinhwan Jung, Executive Director in charge of Vehicle Development 2 at the R&D Headquarters, and Eric Wood, Executive Director of FortyTwoDot.

From the left, Eric Wood, Executive Director of FortyTwoDot; Jose Munoz, President of Hyundai Motor Company; Sangyeop Lee, Vice President in charge of Hyundai Genesis Global Design; and Jinhwan Jung, Executive Director in charge of Vehicle Development 2 at the R&D Headquarters, are answering questions from the press at the 'The All New Tucson' World Premiere Media Briefing held in New York, USA. New York, USA – Photo by Seungjin Lee

President Munoz emphasized the importance of the U.S. market as the reason for choosing New York as the reveal location for the new model. He explained, "The U.S. is the most important market for Hyundai Motor Company, and New York is an iconic city representing America. Tucson is a popular model in New York and is well-suited for introducing new technologies and products." On this day, Hyundai Motor Company hosted the "The All-New Tucson" World Premiere in New York, marking the vehicle’s first global debut.

Regarding the design direction of the new Tucson, "The Boldest," Vice President Sangyeop Lee explained, "About four to five years ago, while starting development and conducting global market research, we confirmed that consumers were seeking a spacious and practical interior as well as a robust design suitable for outdoor activities."

The growth trajectory of Hyundai Motor Company in the North American market further bolsters expectations for the new Tucson. According to Hyundai Motor America, sales in the third quarter of this year reached 246,896 units, up 3% from the same period last year, setting a new quarterly record. Sales in September amounted to 77,439 units, representing a 9% year-over-year increase. Tucson saw its sales rise by 32% in September and by 23% in the third quarter, also achieving record-breaking quarterly performance.

President Munoz pointed to the influx of younger consumers as a key growth driver. He explained that young customers rigorously evaluate not only design, advanced technology, and safety, but also price and used car residual value. Hyundai Motor Company’s competitive advantage, he said, lies in its wide range of models from sedans to small and large SUVs, along with diverse technical offerings.

Hyundai Motor Company CEO Jose Munoz poses for a commemorative photo at the 'The All-New Tucson World Premiere' held at Sound River Studio in New York, USA. Hyundai Motor Company

The hybrid lineup is also a major growth engine. In September, hybrid sales by Hyundai Motor America increased by 39% compared to the same month last year, setting a monthly record and accounting for 28% of total sales. Tucson Hybrid’s sales over the past six months climbed by 67%, now making up more than 28% of all Tucson sales.

Hyundai Motor Company has decided to produce the Tucson Hybrid at its Alabama plant in the United States, which boasts an annual maximum production capacity of about 400,000 units. The new Tucson will launch first in Korea, with plans to introduce it in major markets such as North America in 2027. The Ulsan plant will supply the domestic market and global exports, while the Alabama plant will serve North America and the Czech plant will cover the European market.

In terms of pricing strategy, Hyundai Motor Company is emphasizing residual value. Previously, there was criticism that the price of the newly launched Avante was raised to over 40 million won, making it too expensive. In response, President Munoz reaffirmed the company’s principle of maintaining price competitiveness despite rising raw material and logistics costs, stating that not only vehicle price but also financial programs and total cost of ownership are crucial factors.

He explained, "For lease customers, who account for more than 30% of the U.S. passenger car market, residual value affects monthly payments. Therefore, high quality and durability can significantly reduce the real burden of purchase."

Eric Wood, Executive Director, added, "Maintaining vehicle functions up-to-date through Over-the-Air (OTA) software updates will also help preserve residual value."

The Tucson displayed at the 'The All-New Tucson World Premiere' event held at Sound River Studio in New York, USA. Hyundai Motor Company

Regarding the sluggish domestic market, supply disruptions due to strikes were identified as the main cause. President Munoz stated, "Our struggles in the Korean market are not due to product competitiveness issues, but rather because we could not sufficiently supply the cars customers wanted." He pledged to expand strategies tailored for the Korean market now that production has normalized. He also revealed plans to bolster competitive advantages in quality and service by continuing investments in manufacturing bases, such as the Ulsan EV-dedicated plant and the Metaplant in Georgia, USA.

He acknowledged that Hyundai Motor Company’s initial response to the transition to electrification in China had been insufficient. The company plans to launch the IONIQ 5N and expand its hybrid lineup in China, incorporating local customer preferences into its designs. Cooperation with Beijing Automotive will also be strengthened. Additionally, Hyundai Motor Company will utilize its Chinese production base as an export hub for emerging markets in the Middle East and Central and South America to boost plant utilization and profitability.

President Munoz expressed his commitment to restoring consumer trust in China by focusing not only on price competition, but also on technological capability, quality, and brand value.

This content was produced with the assistance of AI translation services.