Hyundai, Kia EV sales on a roll in US due to better style, pricing

Hyundai Motor Co. and its sibling Kia Corp. sold 6,627 units of electric vehicles together in the US last month, 51% more than a year ago as their diverse EV model mix catering to different demands in style and pricing offset the overall cooling EV fad in the country.

According to Hyundai Motor and Kia on Thursday, they jointly sold a total of 17,916 units of eco-friendly cars in the US in January, up 8.7% from the same month last year.

Of the total, hybrid car sales dropped 6.7% to 11,266 units but EV sales soared 51% to 6,627.

Their brisk EV sales were in contrast to their overall car shipments in the world’s second-largest car market, which dropped 4.9% to 102,902 units over the same period – 47,543 units of Hyundai Motor, down 9%, and 51,983 units of Kia, down 2%.

As a result, eco-friendly car sales accounted for 17.4% of the Korean auto duo’s entire US shipments in January, up 2.1 percentage points from the same month last year.

BIG DISCOUNTS REVIVE EV DEMAND

Korea’s No. 1 and No. 2 car brands, the EVs of which are not eligible for up to $7,500 EV subsidies under the US Inflation Reduction Act (IRA), offered their EV buyers in the US generous discounts tantamount to the maximum IRA tax breaks last month to offset rapidly cooling EV demand in the country, said an auto industry official.

Partly thanks to the offers, Hyundai Motor’s EV sales grew 42% and Kia’s electrified car sales climbed 57% in the US in January.  

“Coming off a record-breaking 2023, January was a difficult month with economic challenges and interest rates making it a tough retail environment,” said Randy Parker, CEO of Hyundai Motor America. “There were bright spots with sales of electric vehicles and plug-in hybrids achieving substantial year-over-year growth, and our all-new Sante Fe starting to arrive at dealerships.”

Hyundai Motor said it set total sales records last month for the Santa Fe PHEV (+273% YoY), the Tucson PHEV (+927% YoY), the Palisade (+14% YoY), the Kona (+14% YoY) and the Kona EV (+37% YoY).

For Kia, the all-new Kia EV9 sport utility vehicle sold 1,408 units in January, up 27% after its December debut in the US.

“With our flagship EV9 three-row EV SUV off to an impressive start after being named 2024 North American Utility Vehicle of the Year, and Kia’s rugged and capable SUVs continuing to gain market share, Kia will charge ahead in 2024 with six new and significantly redesigned vehicles scheduled to arrive in showrooms,” said Eric Watson, vice president sales operations of Kia America.

Its best-selling cars in the US last month were the family van Carnival (+81% YoY), the Sportage SUV (+16% YoY), the Forte sedan (+10% YoY) and the EV6 (+9% YoY).

Sale volumes of Hyundai’s EV IONIQ 6 and the Genesis Electrified GV70, which were not sold a year ago in the US, reached 760 units and 114 units, respectively, last month, gearing up for a solid year ahead.

The hybrid models of Hyundai’s and Kia’s popular SUVs also helped lift their overall eco-friendly car sales in the US last month.

Kia's Sportage Hybrid sold 2,604 units, 58.6% higher than a year ago, while Hyundai's Santa Fe Hybrid and Tucson Hybrid shipments rose 11.3% and 8.1%, respectively, over the same period in the market.

Hyundai's Tucson and Kia's Sportage were the best-selling models overall in the US after selling 11,116 units and 9,994 units, respectively.

HYUNDAI, KIA NARROWING GAP WITH EV LEADER TESLA IN THE US

The latest US sales results suggest that the Korean auto siblings are emerging as stronger rivals against Tesla Inc. in the US EV market, which is largely controlled by the latter.

Hyundai Motor and Kia jointly commanded the second-largest share in the US EV market after Tesla last year, and are widely expected to remain ahead of non-Tesla rivals this year with their broad lineup of EV models, industry observers said.

Hyundai Motor, its luxury marque Genesis and Kia currently sell nine EV models in total in the US, meeting diverse demands in style and pricing, the biggest factor differentiating them from the competition, including Tesla.

The No. 1 EV seller Tesla offers only five models.

The Korean duo are set to release new EV models this year, which are expected to help them further their EV momentum.

The two car-making units of Hyundai Motor Group last week unveiled ambitious overall sales targets for this year after delivering record-high annual profit and sales figures last year on the back of robust sales of pricey cars, SUVs and eco-friendly vehicles.

Hyundai Motor aims to sell 4.24 million cars globally this year, up 0.6% from 2023, while Kia hopes to deliver 3.2 million units, up 3.6%.

Especially Kia will continue its EV push with an enhanced eco-friendly vehicle lineup.

Write to Jae-Fu Kim at hu@hankyung.com

Sookyung Seo edited this article.