Genesis posts sales growth in US as other auto brands suffer

Hyundai Motor Co. said on Wednesday its premium Genesis brand saw its US car sales considerably grow in April when all other major carmakers reported a significant drop amid a continued automotive chip shortage.

The company sold 5,039 Genesis cars in the US market last month, up 53% from 3,294 units in the year-earlier period and posting its 17th consecutive month of on-year growth.

The growth contrasts with falling sales by its Japanese rivals.

Toyota Motor Corp.’s US auto sales under its luxury Lexus brand fell 17.5% on-year to 22,296, while Honda Motor Co.’s sales of premium Acura cars declined 33.3% to 10,980 units.

The Genesis brand’s decent performance in April comes as Hyundai and Kia Corp., the two automaking units of Hyundai Motor Group, logged a smaller decline in US car sales than their global peers thanks to the growing popularity of the Korean duo’s eco-friendly vehicles, including electric models.

Hyundai and Kia, Korea’s two largest automakers, sold a combined 125,770 vehicles, including Genesis cars, in the US last month, down 16.7% from a year ago.

Toyota said its overall US car sales fell 22.7%, while Subaru Corp. posted a 25.5% decline. Honda’s US sales dropped 40.4% to 93,250 units, falling further behind Korea’s Hyundai.

Last year, Hyundai Motor Group outsold Honda in the US, trumping the Japanese rival in the world’s second-largest car market for the first time in 35 years.

As a result of the April sales, Hyundai and Kia’s combined market share in the US likely rose to the 10% range from 9.7% at the end of March, industry watchers said.

IONIQ5, EV6 LEAD APRIL SALES

Hyundai Motor America said its April performance was led by electric vehicles, notably the IONIQ 5 crossover, which recently won the World Car of the Year award, and Kia’s latest electric model, the EV6.

The two sister firms sold 14,197 eco-friendly vehicles, including 2,677 IONIQ 5 cars and 2,632 EV6 units, in April. The subtotal represents a 78.2% rise from a year earlier.

Hyundai Motor said its electrified vehicle retail sales increased 68% on-year in April. The company had no fleet sales last month due to strong demand from retail buyers.

“Even with the challenges facing our industry, we were able to exceed the pre-pandemic total and retail sales of April 2019,” said Randy Parker, senior vice president in charge of national sales at Hyundai Motor America.

Meanwhile, Kia said its accumulated US sales, led by the Sportage SUV and electric cars, passed the 10 million mark for the first time since deliveries to American buyers began in 1993.

Strong retail demand has also lowered the two Korean carmakers’ inventory to a record-low level of seven to nine days’ worth of vehicles, down from the usual 60 days and slashed incentives they offer to dealers.

According to automotive pricing and information service provider TrueCar Inc., dealer incentives in April for Hyundai and Kia cars fell to $597 and $834 per unit, respectively, down 76% and 68% from a year ago.

Hyundai and Kia’s average auto sales prices rose 21% and 16% each to $37,137 and $34,530.

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