Hyundai Motor Group’s Growth in US Market Boosted by Eco-Friendly Vehicles and Electric Cars

Hyundai Motor Group has been growing for 10 consecutive months in the US market. At the center are eco-friendly vehicles, including electric vehicles. Sales of electric vehicles are increasing despite the obstacle of the US Inflation Reduction Act (IRA), which sets electric vehicles made in the United States as a precondition for subsidies.

Hyundai, Kia, and Genesis sold a total of 147,103 units in the United States in May. Compared to the same period last year, sales increased by 20.8%. Kia’s growth rate is steeper. Hyundai and Genesis sold 75,606 units. Compared to a year ago, it increased by 18.4%. Kia sold 71,497 units, an increase of 23.4%.

Both Hyundai and Kia have increased their sales compared to the same period last year for 10 consecutive months from August last year. From November of last year, Hyundai Motor Group’s US sales volume has continued to grow in double digits for seven consecutive months.

Hyundai Motor Group’s growth in the US market is being led by pure electric vehicles and hybrid vehicles (HEVs). Hyundai Motor and Kia sold 26,187 eco-friendly cars in the US last month. This is an increase of 69.0% compared to the same period last year. Hyundai Motor Company and Kia sold 13,945 and 12,424 eco-friendly cars, respectively, which are the highest monthly sales ever. The proportion of eco-friendly vehicles out of total vehicle sales was 17.8%, the highest ever.

Among eco-friendly vehicles, the growth rate of hybrid vehicles is particularly high. A total of 18,066 hybrid cars were sold. It is the largest monthly sales volume for Hyundai Motor and Kia combined, and the largest monthly sales volume by Hyundai Motor Company standards. The sales volume increase rate is 80.1%.

By model, Sorento Hybrid sold 2545 units. Compared to the same month last year, it increased by 150.5%, the highest record ever. Elantra HEV (2173 units) grew by 152.1%, Sonata HEV (1235 units) grew by 75.4%, Tucson HEV (3660 units) by 104.5%, and Santa Fe HEV (1925 units) by 167%.

Hyundai Motor Group’s electric vehicles, which do not have local production in the US, were discriminated against under the IRA, but 8,105 units were sold, achieving the highest monthly sales. Hyundai Motor’s Ioniq 5 sold 2446 units and Kia EV6 2237 units. This is the highest number of sales this year. Ioniq 6, which was released in the US market in March this year, also sold 971 units. It is the highest sales volume after entering the US.

However, other automakers are also performing well in the US market, which can be interpreted as a result of the automobile market boom.

“Demand is basically increasing because the electric vehicle market is growing,” said an industry source. “The US electric vehicle subsidy is the most basic condition for US production, but it cannot be received even if the price of the car is too high or the annual salary is too high,” he said. “There are consumers for whom the subsidy does not work as a variable.”