Hyundai's Genesis beats Lexus' selling price in US

The rising demand for high-end vehicles, despite dwindling production caused by semiconductor shortages, are driving new vehicle prices to record highs in the US, sending the price tag of Hyundai Motor Co.'s premium brand Genesis above $60,000 per unit.

In September, Genesis sold for $60,087 per unit, up 29.7% from a year earlier. It outstripped the price of its rival brand Toyota Lexus at $53,316, according to Kelley Blue Book, a US automotive research house, on Nov. 2.

A series of the rollout of premium SUV models, including GV80 and GV70, was behind the sharp price increase. Higher wages on the back of workforce shortages fueled demand for luxury cars, particularly electric vehicles.

Other vehicle makers, including Toyota, Honda, Ford and General Motors, also enjoyed a surge in demand for mid-size SUVs. They posted double-digit year-on-year increases in US sales of both SUVs and pickup trucks in September.

The selling prices of vehicles from 15 car brands averaged $45,031 per unit in September, up 12.1% on year, according to Kelley Blue Book. Compared to August, the average price added 1.6%.

It was the first time for a new vehicle price to surpass $45,000 on average in the US, which has been in the upward spiral since March of this year. 

Genesis sold 4,867 units in the US in September, a 331.5% surge on year. It was high on the list of pricey cars in that month.

Car brand	Average selling price in September	year-on-year change
Genesis	$60,087	29.7%
Lexus	$53,316	N/A
Hyundai	$33,390	12.6%
Kia	$33,036	11.5%
Source: Kelley Blue Book

Battered by ongoing semiconductor crunch, global carmakers have suffered from a combined 9.8 million units in lost production this year as of end-October, according to AutoForecast Solutions. The volume of lost production represented 13% of the 77 million units sold worldwide last year.

BUDGET CARS LOSES GROUND

To cope with the chip shortages, the vehicle makers have been funneling semiconductor chips into pricey models. That led to the delay or halt to the production of small cars, or those priced around $20,000 per unit.    

Further, drivers' shift into high-end models equipped with state-of-the-art features are forcing budget cars out of the way. Honda's popular subcompact Fit, Toyota Yaris, Ford Fiesta and Chevrolet Sonic were discontinued in the US.

In South Korea, Ssangyong Motor lifted the price of its top-selling subcompact SUV model Tivoli by 700,000 won to 1 million won ($593-$847) last month, as their delivery has been delayed.

Write to Il-gue Kim and Hyung-gyu Kim at Black0419@hankyung.com
Yeonhee Kim edited this article