Hyundai, Kia post record hybrid vehicle sales in US in October

Hyundai Motor Co. and Kia Corp., which are gradually increasing their presence in the US market, saw their hybrid vehicle sales reach an all-time high level in October amid signs of an easing global automotive chip shortage.

The two South Korean automakers said on Wednesday their US sales of hybrid cars, led by Elantra HEV, Santa Fe HEV and Tucson HEV reached 12,622 units, up 36% from the same period a year earlier. That beat the Korean duo’s earlier record monthly sales of 12,334 units in May 2021.

Hyundai Motor said in mid-October that it will increase production of hybrid models by some 15% globally next year to focus on the popular segment as the company has yet to benefit from the US tax credit that favors electric vehicles made in North America.

Hyundai Motor Group, which includes the premium Genesis brand, said its overall vehicle sales in the US, the world’s second-largest car market, rose 8% to 123,233 units in October from a year earlier.

Hyundai Motor saw its sales climb 7% to 60,604 units, while Kia's sales gained 12% to 58,276 vehicles.

Sales of Genesis cars fell 18% to 4,353 units.

With the latest sales data, Hyundai Motor Group posted its record US sales for any October.

DEMAND IS STILL THERE

“Demand is still there and our lineup of EV vehicles contributed to record sales,” said Randy Parker, chief executive of Hyundai Motor America.

Kia’s US sales were led by the Sportage family of SUVs, including the Sportage HEV and PHEV models, which more than doubled from the year-earlier period.

“After record third-quarter sales, Kia’s upward momentum continues with sales of our electrified models more than doubling, leading to our best-ever October,” said Eric Watson, vice president in charge of sales operations at Kia America.

For the first 10 months of the year, Hyundai Motor Group’s US sales dropped 6.1% to 1.21 million units.

Hyundai Motor’s sales fell 8% on year to 588,902 cars, while Kia’s sales dropped 5.1% to 576,424 units. Genesis saw its sales rise 14% to 45,233 units in the January-October period.

Hyundai and Kia are among the automakers with the most to lose from new rules – the Inflation Reduction Act – which was signed into law in August, halting subsidies for EVs made outside the US.

Hyundai’s popular IONIQ 5 crossover and Kia’s EV6 model are all manufactured in Korea and exported to the US.

Last month, Hyundai Motor broke ground on a $5.54 billion electric vehicle plant in the US state of Georgia to be eligible for US EV tax breaks.

The new manufacturing plant, Hyundai Motor Group Metaplant America LLC (HMGMA), set to start commercial production in the first half of 2025, will have an annual production capacity of 300,000 EVs.

The new factory, located near Hyundai’s existing plant in Alabama and affiliate Kia’s Georgia plant, will produce EVs for the Korean automotive group’s three brands – Hyundai, Genesis and Kia.

Write to Han-Shin Park at phs@hankyung.com
In-Soo Nam edited this article.