No subsidy, no problem: Hyundai, Kia make top 10 US list for EV sales

Hyundai Motor Co. and Kia Corp. in the first half of the year were among the top 10 in sales of battery electric vehicles (EVs) in the US despite receiving no subsidies from Washington's Inflation Reduction Act (IRA), which took effect a year ago.

The Korea Automobile and Mobility Association on Sunday said the Hyundai IONIQ 5 from January to last month finished seventh on the American market with 13,641 units and the Kia EV6 10th with 8,328. Among the top 10 bestselling models in the US, only these two models plus Tesla's Model X did not qualify for IRA subsidies.

After the IRA, which subsidizes EVs only made in North America, was passed in August last year, Hyundai Motor and Kia prepared self-rescue measures to secure their share of the US market. They raised the proportion of commercial sales eligible for subsidies regardless of the IRA through forms like leasing and rental and held promotions like self-incentive payments.

Thus combined EV sales by South Korean companies in the US within the year's first six months like those of plug-in hybrid and fuel-cell models were better than expected with 46,826 units. Despite ineligibility for subsidies, their sales volume rose 5.9% year on year but their market share fell from 10.5% to 7.2%, as analysts said such manufacturers could not completely avoid the effects of the IRA.

Industry pundits urge more active government-level support to boost the presence of domestic companies on the US EV market. Competition among global players in the sector is intensifying, with world No. 1 Tesla this year cutting prices to raise sales despite reduced margins.

Write to Sungsu Bae at baebae@hankyung.com