Hyundai Genesis, Kia attract record customers in US

Hyundai Motor Co.’s premium car brand Genesis and its affiliate Kia Corp. have logged record sales in the US so far this year, helping Hyundai Motor Group expand its market share in the world’s second-largest automobile market.

Kia sold 652,910 vehicles in the US during the first 11 months of the year, exceeding the current annual record of 647,598 set in 2016, according to the group of Hyundai and Kia, South Korea’s top automakers, on Dec. 2. US drivers also bought 44,622 of the Genesis models in the January-November period, far exceeding the record of 26,409 units reported in 2016.

Hyundai and Kia’s combined market share in the US was estimated at 9% in November, up 0.4 percentage point from a year earlier, said industry analysts in South Korea. If they keep the trend in December, Hyundai Motor Group is set to become the No. 5 carmaker in the US, surpassing Japan’s Honda Motor Co.

DECLINE LESS THAN JAPANESE RIVALS IN NOVEMBER

In November, Hyundai and Kia sold 94,665 units in total, 9% lower than a year earlier, as the ongoing global automotive chip shortage continued to bite into production. Sales of Hyundai, including the Genesis, skidded 12% to 49,347 units, while Kia’s sales fell 5.4% to 45,318 units, although their sales of eco-friendly models jumped 163% to 8,483 units.

But their declines were smaller than a 25.4% drop in Toyota Motor Corp. and a 17.1% slide in Honda. Subaru Corp. suffered a 34% tumble in sales volume.

Strong demand for Hyundai and Kia kept raising their selling prices. Hyundai’s average selling price rose 11.4% on-year to $33,861 last month, while Kia’s average price tag grew 12.8% to $31,386, outperforming the average rise of 8.6% in the industry, according to TrueCar Inc., an automotive pricing and information website. Their price hikes ranked No. 2 and No. 3 after General Motors Co. with a 16% increase.

Sales incentives that automakers pay to dealers have been faltering too, improving their earnings. Hyundai and Kia’s incentives per car fell 53% and 43.7%, respectively, compared to the average 50.1% decline in the industry.

Write to Hyung-Kyu Kim at khk@hankyung.com
Jongwoo Cheon edited this article.