[Edaily Reporter LEE BAE-WOON ] Amid ongoing consumer complaints regarding the price increase for Hyundai Motor’s recently launched 8th-generation “The All-New

,” Hyundai Motor CEO José Muñoz explained that rising raw material and logistics costs, as well as the expanded use of advanced technologies, contributed to the price hike.

At a media briefing held during the 2026 CEO Investor Day at the Conrad Hotel in Yeouido, Seoul, on the 26th, President Muñoz responded to a question about the price increase for the new Avante by saying, “No matter what product, segment, or market we analyze, the first factor we consider is price.”

He explained, “Raw material prices have been rising for a long time, and there have been logistical challenges due to geopolitical issues,” adding, “Vehicles now incorporate features and technologies we couldn’t have imagined five years ago. As vehicle sizes increase and we use higher-quality materials, this is affecting both costs and prices.”

However, he emphasized the need to distinguish between the costs of vehicle production and the actual selling price. He explained that while production costs can be managed by the company through technology, vehicle specifications, and procurement strategies, the selling price is determined by market competition and consumer choice.

President Muñoz said, “Costs can be controlled by adjusting technology and vehicle features and leveraging purchasing power,” adding, “On the other hand, prices are not something we control; they are adjusted based on market conditions and competition.”

He also cited the high demand for the new Avante as a factor influencing pricing. “The Avante is a product with extremely high demand and competitiveness, and we are competing to secure as much inventory as possible in each region,” he said. “This outcome can also be seen as reflected in the price.”

He also left open the possibility of adjusting specifications or sales incentives if the company determines that the vehicle’s price competitiveness in the market has weakened.

President Muñoz said, “If we assess the market and determine that a price adjustment is necessary, we will take the necessary measures,” adding, “This could include adjusting features or utilizing sales incentives.”

He continued, “For any product, in any country, price is the first factor to consider,” emphasizing, “Ultimately, I believe consumers determine the price. We must consider not only whether the price is appropriate and competitive but also profitability.”