Hyundai, Kia to rank third in Europe’s car market after 45 years

Just a couple of decades ago, vehicles built by Hyundai Motor Co. and Kia Corp. were dismissed as second-class cars of poor quality, with some car magazines deriding them as “refrigerators on wheels.”

The two South Korean carmakers, however, have come a long way and are now together poised to be among the top three best-selling automakers there, overtaking their closest rival Renault Group, a European heavyweight. 

According to the European Automobile Manufacturers Association (ACEA), the two automaking units of Hyundai Motor Group sold 986,860 vehicles in the first 11 months of the year in Europe, up 4.6% from the year-earlier period.

Despite the protracted automotive chip shortage across the region, Hyundai Motor, Korea’s No. 1 carmaker, sold 477,667 units in Europe in the January-November period. Kia’s sales reached a record 509,193 cars.

Combined, the two sister companies’ sales figures trailed top seller Volkswagen’s 2.52 million and the runner-up Stellantis’ 1.89 million.

Renault Group came fourth with sales of 945,552 vehicles over the same period.

Barring the unexpected, Hyundai and Kia are certain to overtake Renault as Europe’s third-best car seller on an annual basis, achieving a feat that the Korean companies have longed for since they entered the European market in 1977, industry officials said.

The two Korean automakers’ combined European market share, which stood at 9.7% at the end of November, is also expected to rise further by year-end to surpass their previous yearly record high of 10% set in 2021.

To expand their presence in Europe, Kia established a manufacturing plant in Slovakia in 2006 and Hyundai Motor built a factory in the Czech Republic in 2008.

Hyundai’s Czech plant, with an annual production capacity of 350,000 units, mainly produces the i30 hatchback, the ix20 compact sedan, the Tucson SUV and the Kona electric SUV.

Kia’s plant in Slovakia, with an annual capacity of 330,000 units, manufactures the Sportage SUV, the Ceed hatchback and the Venga compact, tailored to European taste.

ON COURSE FOR RECORD SALES

Hyundai and Kia are on course for record sales in Europe this year, driven by their latest electric vehicles.

Their sales are gaining momentum thanks to Hyundai’s first fully electric sedan IONIQ 6 and Kia’s electric crossover utility vehicle EV6.

The EV6 has been recognized for its performance and marketability in Europe, being named the 2022 Car of the Year at the prestigious European Car of the Year (COTY) awards.

The Kia Sportage SUV was recently named the 2023 Spain Car of the Year and the 2023 Greece Car of the Year.

The European EV market is important to Hyundai Motor Group as it has been sluggish in China, the world’s largest car market.

In the US, the Korean duo is up against the Joe Biden administration’s policy to protect the domestic electric vehicle industry.

In October, Hyundai Motor Group Chairman Chung Euisun visited Slovakia and the Czech Republic to discuss with their governments the possibility of the group expanding eco-friendly vehicle production facilities there.

Kia’s Slovak factory plans to produce compact electric vehicles targeting European consumers from 2025, while Hyundai’s Czech plant plans to ramp up production of the Kona electric.

Write to Hyung-Kyu Kim and Il-Gue Kim at khk@hankyung.com
In-Soo Nam edited this article.