Hyundai’s Chung urges US operations to double down after record Q1

Hyundai Motor Group Chairman Chung Euisun on Tuesday urged its US operations to work harder after its two automaking units, Hyundai Motor Co. and Kia Corp., posted record first-quarter car sales in the world’s largest market.

Hyundai Motor America sold 198,218 vehicles, including premium Genesis cars, in the first three months of the year, up 15.6% from the year-earlier period.

Kia’s US sales reached 184,136 units in the first quarter, up 21.8% from a year earlier. Combined, the two companies’ US sales gained 18.5% over the same period, ranking second in terms of growth after Volkswagen’s 19.8%.

The latest figures represent each of the two Korean companies and their combined record US sales in the January-March period.

With the sales, Hyundai Motor Group ranked fourth in US car sales, following market leader General Motors Co., Toyota Motor Corp. and Ford Motor Co.

The Korean automotive group’s eco-friendly cars, including electric vehicles, sold 56,369 units in the first quarter, up 27.1% from a year earlier. EV sales, however, fell 6.5% year on year to 14,703 units, partly affected by the implementation of stricter EV subsidy rules under the Inflation Reduction Act.

“Our US scorecard isn’t bad. But we must work harder there,” Chung said of the group’s first-quarter US sales as he was approached by reporters at Seoul Mobility Show 2023 in Goyang city near Seoul.

To counter the US battery subsidy program, Hyundai is building a $5.54 billion electric vehicle and battery plant in Georgia, which is expected to start commercial production in the first half of 2025.

On Monday, Hyundai and Kia, Korea’s two largest automakers, said first-quarter car sales at their Korean operations also reached an all-time high, which could prompt them to revise up their full-year earnings and sales guidance.

TESLA BOOTH

At the Seoul motor show, the Hyundai Group chief showed a keen interest in robots and futuristic vehicles.

He dropped by the Tesla booth, which showcased its recently released large SUV Model X and humanoid robot, Tesla Bot.

Tesla Chief Executive Elon Musk said last September the company would produce millions of such robots within three to five years at $20,000 apiece to fundamentally change human civilization.

Hyundai Motor Group has been actively expanding its robot business since it acquired Boston Dynamics Inc. in mid-2021 – a US robotics startup known for Spot, a maneuverable dog-like robot.

At Seoul Mobility Show, Chairman Chung also visited the KAIST booth to check out the top Korean technology university’s autonomous driving platform.

He then met with Kwak Jea-sun, chairman of KG Mobility, formerly Ssangyong Motor Co., which showcased its latest all-electric SUV Torres EVX, which can travel about 500 km on a single charge.

With its new EV models, KG Mobility, which specializes in SUVs, aims to enter emerging markets such as Latin America and the Middle East, Kwak said.

Write to Il-Gue Kim, Nan-Sae Bin and Sungsu Bae at Black0419@hankyung.com

In-Soo Nam edited this article.