05:37 11-04-2026

Hyundai adapts supply strategy due to Middle East logistics risks

Hyundai is shifting its global supply chain as Middle East instability disrupts key routes. Learn how rerouting and local production affect costs and vehicle delivery.

Hyundai is reevaluating its global supply strategy amid instability in the Middle East. According to company head Jose Munoz, the traditional globalization model no longer functions due to logistics risks.

Key maritime routes, including the Red Sea and the Strait of Hormuz, have become unsafe. Consequently, the company is forced to reroute ships carrying vehicles and components to Europe around Africa via the Cape of Good Hope. This increases delivery times and costs.

To mitigate risks, Hyundai plans to boost warehouse stocks in Europe and make greater use of local production facilities. The company already operates plants in the Czech Republic and Turkey. It is also considering expanding component purchases from European suppliers to reduce reliance on international logistics. Internal supply chain meetings now occur weekly instead of annually.

These changes could impact the market, including new 2026 vehicles, as automakers adapt to new supply and production conditions.