While most automakers are raising prices in response to the 25% import tariffs recently imposed by the US government, Hyundai Motor Group is taking a bold and very different approach: cutting prices and rolling out aggressive 0% financing offers to win over price-conscious American car buyers.
Hyundai’s american division just launched a high-impact promotion offering 0% APR for 60 months on top-selling SUVs like the Santa Fe, Santa Fe Hybrid, and Palisade, available by September 2. On top of that, buyers can defer their first payment for up to 90 days.
This pricing push from South Korea’s largest carmaker, which includes Hyundai, Kia, and luxury brand Genesis, stands in stark contrast to rivals like Toyota and BMW, both of which have recently raised their U.S. sticker prices in response to the new trade policy. Industry experts say Hyundai is willing to sacrifice some margin in exchange for greater market share and long-term positioning. “With the tariff-driven demand spike peaking in April and May, we’re now entering a softer period where price sensitivity is key,” said Charlie Chesbrough, senior economist at Cox Automotive.
Hyundai’s game plan doesn’t stop at 0% financing. The company is also offering cash rebates of up to $3,500 across 19 different models. Santa Fe and Santa Fe Hybrid buyers can get a $3,500 rebate with a cash purchase, while the Palisade and Tucson are being discounted by $2,750 and $1,750 respectively. These incentives, initially set to expire in early July, have now been extended through early September.
Kia is also getting in on the action, with discounts ranging from $300 to $1,000 on select models. Meanwhile, EVs like the Hyundai IONIQ 5, IONIQ 9, and Kia Niro EV are receiving temporary incentives of up to $7,500, making them even more attractive in a rapidly growing electric market.
The South Korea carmaker is betting that affordability will be the deciding factor for many buyers during this volatile period. So far, that strategy appears to be working. Combined U.S. market share for Hyundai and Kia rose to 11% in the first half of the year, up from 10.5% a year earlier. Still, the price war is intensifying.
Analysts warn that a prolonged discounting trend could squeeze margins across the industry, raising red flags for investors already concerned about slowing global demand and rising production costs. But for now, Hyundai is doubling down, convinced that buyers will reward the brand for prioritizing value and affordability.
