Hyundai Kia Survives 'Worst April' in US with 'SUV Trio'

Hyundai Motor Sells 34,774 Units in the U.S. in April, Down 39% Year-on-Year
Thanks to New Models Venue and Palisade... Tucson Also Performs Well, Matching Last Year's Sales

[Asia Economy Reporter Kim Ji-hee] Hyundai Kia Motors overcame the worst adversity of the novel coronavirus infection (COVID-19) last month in the U.S. market by leading with sports utility vehicles (SUVs).

According to the industry on the 4th, Hyundai sold 34,774 units (including Genesis) in the U.S. market in April this year, down 39% from the previous year. As the spread of COVID-19 began in the U.S., sales volume decreased further compared to March, which recorded the lowest monthly sales in about 10 years. However, it is evaluated that they performed relatively well in the crisis by reducing the year-on-year sales decline rate.

The new SUVs released consecutively last year offset the impact of COVID-19. Sedan sales in April decreased by 58.5%, but SUV sales only dropped by 13.3%. The Venue and Palisade, launched in the second half of last year, sold 817 and 3,331 units respectively last month, defending overall sales performance. Tucson recorded sales of 8,438 units, similar to April of last year.

On the other hand, other global automakers experienced significant declines in U.S. sales. Japanese leading brands Toyota and Honda each saw sales drop by 54% year-on-year, taking a direct hit from COVID-19. Subaru also saw a 47% decrease in sales during the same period. American companies such as Ford and GM also saw their sales halved. New car sales in the U.S. last month are expected to be 630,000 units, the lowest level in 30 years.

During this period, Kia's U.S. sales were recorded at 31,705 units, down 38.3% year-on-year. Sales of the K5 (local name Optima) decreased by 18%, and volume models such as Sportage (-34.8%), Sorento (-42.6%), and Telluride (-44.6%) mostly underperformed. However, the small SUV 'Seltos,' introduced earlier this year, sold 1,839 units, partially offsetting the slump.

April was expected to be a severe blow to the automotive market as the U.S. market was virtually 'all stopped' throughout the month due to the COVID-19 crisis. Hyundai Kia Motors also experienced a halt in both production and sales due to factory shutdowns and dealer business suspensions starting in mid-March. Nevertheless, both Hyundai and Kia exceeded market expectations last month, creating an atmosphere that they are responding relatively well to COVID-19.

An industry official said, "It is meaningful that Hyundai Kia Motors achieved relatively good results compared to competitors in the U.S. market in April, which was expected to be the worst month," adding, "The strategy to strengthen the SUV-centered product lineup that has continued since last year and the quickly implemented unemployment protection programs in response to COVID-19 seem to have been effective."

This content was produced with the assistance of AI translation services.