Hyundai, Kia post record US car sales as Japanese firms struggle

Hyundai Motor Co. and Kia Corp., the two automaking units of Hyundai Motor Group, saw their combined auto sales in the US rise to their highest level in January when almost all major carmakers posted declining sales.

The South Korean duo sold a combined 93,998 cars in the US last month, up 3.1% from the year-earlier period. The results represent their best-ever US sales for the month of January.

Hyundai’s January sales, including those of its standalone premium brand Genesis, increased 11.5% on year to 51,510 units. Kia’s sales, however, fell 5.5% to 42,488 units.

Hyundai Motor’s US sales rose 10% to 47,872 units, with the Genesis brand’s sales jumping 29% to 3,638 cars.

Most Japanese carmakers operating in the US posted weakening sales.

Toyota Motor Corp. posted a 5.1% on-year decline in US auto sales in January, while Honda Motor Co.’s sales fell 19.8%. Subaru Corp.’s US sales declined 4.8% and Mazda Motor Corp.’s sales weakened by 16.5%.

HYUNDAI, KIA BEAT HONDA AGAIN

Hyundai and Kia, which last year beat Japan’s Honda Motor for the first time in 35 years in the US, sold more than the Japanese rival, which sold 73,949 cars in January.

The Korean automotive group’s US sales were driven by sport utility vehicles such as Hyundai’s popular mid-size SUV Tucson, Santa Fe, Palisade and Kia’s Telluride, Sorento and Sportage.

SUVs, which are more profitable than sedans, accounted for 70.7% of Hyundai Motor Group’s total US sales in January, compared with 65.8% in the year-earlier period.

Genesis extended its monthly sales growth to the 14th straight month.

"High levels of consumer interest across our product lineup resulted in record-breaking January sales even as we continue to navigate through the global pandemic and microchip shortage," Randy Parker, senior vice president in charge of national sales at Hyundai Motor America, said in a statement.

Hyundai and Kia managed the persistent global chip shortage situation relatively well, contributing to their retail sales, according to industry officials.

Hyundai, Korea’s top automaker, said last week it expects the global automotive chip shortage, which plagued carmakers throughout last year, to gradually ease from the second quarter.

According to J.D. Power and other market researchers, new car sales in the US market likely fell between 9% and 16% overall in January, weighed by an unstable auto parts supply.

KIA’S EV6 COMING WITH A SUPER BOWL AD

The Korean duo’s eco-friendly vehicle sales also rose significantly in January.

The two companies sold a combined 10,791 eco-friendly cars last month, more than tripled from a year earlier. Of the total, electric cars accounted for a fifth, or 2,103 units.

Hyundai’s latest EV, the IONIQ 5, which began selling in the US from the end of last year, sold 989 units in January.

"After outpacing the industry and our own best-ever annual sales performance in 2021, Kia's shift toward electrified vehicle sales is off to a strong start with record-breaking January sales for the brand's electric, hybrid and plug-in hybrid models," said Eric Watson, vice president in charge of sales operations at Kia America.

Kia plans to bring its latest all-electric EV6 to the US market in the coming weeks, with an advertisement in the Super Bowl.

Write to Hyung-kyu Kim at khk@hankyung.com
In-Soo Nam edited this article.