Hyundai Kia Motors Hits Bottom and Rebounds in US Market in May

Hyundai Motor's US Sales Up 69% Month-on-Month, Kia Up 44%
Hyundai and Kia Recover April Sales to 50,000 and 40,000 Units Respectively
Emerging Markets Like India, Brazil, and China Also See Worst Phase Pass
Hyundai's Mid-Size SUV Creta Becomes India's Best-Selling Car in May

[Asia Economy Reporter Suyeon Woo] Hyundai Kia Motors' U.S. performance, which was shocked by the novel coronavirus infection (COVID-19), is hitting bottom and rebounding. Starting with the U.S. market, where the shutdown was lifted, overseas sales in emerging countries such as India, South America, and China generally recovered in May, gradually escaping the shock of COVID-19.

According to Hyundai Kia Motors on the 3rd, Hyundai Motor's U.S. subsidiary sales (wholesale basis, excluding Genesis) in May this year were recorded at 57,619 units, up 69% from April. Kia Motors' U.S. sales in May also increased by 44% from the previous month to 45,817 units. Hyundai Kia Motors' U.S. performance, which fell to around 30,000 units in April due to the impact of COVID-19, recovered to the 50,000 and 40,000 unit levels respectively in May.

Compared to last May's performance, it will take some time for a full recovery, but compared to competing brands in the U.S., the results are relatively good. Sales in May this year compared to the same period last year decreased for both Hyundai Motor (-14%) and Kia Motors (-24%), but sales of Honda (-16%), Subaru (-19%), Acura (-24%), and Toyota (-26%) decreased more significantly.

The models that led the strong performance in the U.S. market in May were new sport utility vehicles (SUVs) such as the Palisade (Hyundai Motor) and Seltos (Kia Motors). The SUV share of Hyundai Motor's U.S. sales in May reached a record high of 71%, and the Palisade, which debuted in the U.S. in June last year, exceeded 7,000 units in monthly sales for the first time. Kia Motors' Seltos, launched in the U.S. earlier this year, also set a new record by surpassing 3,000 units per month.

The Hyundai Motor Alabama plant and Kia Motors Georgia plant in the U.S., which were shut down from mid-March due to COVID-19, resumed operations from early May, normalizing supply. Randy Parker, Vice President of Sales at Hyundai Motor's U.S. subsidiary, said, "Since the Alabama plant resumed operations on May 4, inventory levels have been maintained well," and added, "We are optimistic about the market situation for the next few months."

The emerging automobile markets, which were directly hit by COVID-19, are also showing signs of relief as social distancing measures have been partially eased since May. The Indian market, where automobile sales were zero throughout April, resumed sales in May. Hyundai Motor sold 6,883 units in India in May, with the mid-size SUV Creta (3,212 units) accounting for about half of Hyundai Motor's performance in India, ranking first in overall sales in India in May. Another emerging market, Brazil's automobile market, also resumed sales in May, with overall market demand increasing by 11% compared to the previous month. Hyundai Motor, which sold 4,500 units, ranked fifth behind GM, Volkswagen, Fiat, and Toyota.

China, a major market, already hit its bottom in February and succeeded in rebounding for two consecutive months in March and April, and is expected to continue its upward trend in May. Yongkwon Moon, a researcher at Shin Young Securities, said, "Wholesale sales in China, which recorded about 35,000 units in April, are estimated to have increased to the low 40,000 units in May," and added, "Sales performance exceeding last year's level can also be expected."

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