Korean Cars Near 9% Market Share in US... Highest in 9 Years

KAMA Survey Results: Korean Car Market Share in the US from June to August at 8.9%

2020 Palisade (Photo by Hyundai Motor Company)

[Asia Economy Reporter Kim Ji-hee] The market share of Korean automobiles in the United States has significantly increased to nearly 9%. This is attributed to Korean factories maintaining normal operations while most U.S. automobile plants were halted due to the spread of COVID-19, allowing a rapid response to demand following the lifting of lockdown measures in various countries. The rising popularity of Korean sports utility vehicles (SUVs) in the U.S. also played a role.

The Korea Automobile Manufacturers Association (KAMA) announced on the 5th that the market share of Korean brands in the U.S. passenger car market rose to 8.9% over the three months from June to August. The market share of Korean cars, which was 7.7% from December last year to February this year before the COVID-19 outbreak, surged to 8.9% between March and May when most U.S. automobile plants were shut down. This level is similar to the market share during the heyday of Korean cars in 2011.

In particular, Hyundai Kia Motors increased its market share in the light truck segment, which includes SUVs, minivans, and small pickup trucks, accounting for more than three-quarters of the U.S. market. The market share, which was 5.6% before the plant shutdown, expanded by 1.3 percentage points to 6.9% from June to August after the plants resumed operations. During this period, companies such as GM (-1.8 percentage points), Toyota (-0.3 percentage points), and Nissan (-1.2 percentage points) experienced a decline in market share, struggling to recover.

Above all, it is analyzed that maintaining production capacity by continuing factory operations in Korea during the COVID-19 spread from March to May enabled preparedness for the surge in demand after major countries lifted lockdown measures. In fact, compared to the three months before the shutdown, the average month-end inventory change rate after resuming operations was -28.9% for U.S. companies, -28.5% for Japanese companies, and -15.6% for European companies, whereas Korean companies saw a 4.2% increase.

Furthermore, the expansion of Korean brands’ market share is attributed to new car launches focused on SUVs, securing quality competitiveness such as safety, and efficient inventory management through export volume adjustments. Since mid-last year, Hyundai Kia Motors has been targeting the U.S. light truck segment intensively by consecutively adding new SUV lineups such as the Palisade, Venue, and Seltos.

Hyundai’s Nexo and Genesis G70 and G80 received the highest rating, Top Safety Pick Plus (TSP+), in the 2020 crash safety evaluation conducted by the U.S. Insurance Institute for Highway Safety (IIHS), recognizing their quality competitiveness. A total of 17 Hyundai Kia models earned TSP+ or TSP ratings, making them the manufacturer with the most models selected for two consecutive years.

However, as overseas companies have recently resumed normal operations, competition in the U.S. market is expected to intensify. KAMA Chairman Jung Man-ki said, “As global competition is expected to intensify, the industry will make every effort to stabilize labor-management relations and improve productivity,” adding, “The government should actively support such efforts by companies.”

Meanwhile, Chairman Jung held an exchange meeting with the American Automotive Policy Council (AAPC) on the 28th of last month to share market trends before and after COVID-19, government support measures, fuel efficiency regulation trends, and autonomous vehicle-related standardization trends, and discussed cooperation plans between the two sides.

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