[Car Talk Forest] Hyundai and Kia Soaring in the US, The Secret Behind Their Success

Kia Telluride Photo by Yonhap News

[Asia Economy Reporter Changhwan Lee] Hyundai Motor Group's surge in the U.S. market is formidable. Hyundai and Kia sold a total of 804,944 vehicles in the U.S. during the first half of this year. This is a historic high, marking a 48.1% increase compared to the same period last year.

In the first half, Hyundai sold 426,433 units in the U.S., including the Genesis brand, which is a 52.2% increase year-over-year, while Kia sold 378,511 units, up 43.7% from the same period last year.

Both are record highs. On a monthly basis as well, Hyundai and Kia have set new sales records for four consecutive months through last month, making new history.

The main reason for the improved sales performance in the first half is primarily the rebound consumption following COVID-19. Last year, U.S. car sales dropped by about 15% due to the pandemic, but as the situation improved this year, consumers engaged in rebound buying.

What is encouraging about Hyundai and Kia's sales growth is that their increase rate is higher compared to other automakers in the U.S. market. The average sales growth rate of companies that have disclosed first-half sales results so far in the U.S. is 33.7%, while Hyundai Motor Group exceeded 48%.

With a higher sales growth rate than other companies, market share is also rising. Last month, Hyundai Motor Group's combined market share in the U.S. reached 11.1%, the highest monthly level since entering the U.S. market.

The reason Hyundai's position in the U.S. market is improving is also due to the successful expansion strategy of selling luxury vehicles like Genesis and SUVs (Sport Utility Vehicles).

For Hyundai's luxury brand Genesis, 19,298 units were sold in the U.S. during the first half, a 155.9% surge compared to the same period last year. In June alone, 4,054 units were sold, marking a 183.7% increase year-over-year and the highest monthly sales volume.

SUV sales are even more remarkable. Hyundai and Kia sold 496,870 SUVs in the first half, a 48.3% increase from the previous year. SUVs have higher selling prices than sedans, which helps improve the company's profitability.

The popularity of some SUV models is beyond imagination. Reports indicate that for Kia's large SUV, the 2022 Telluride model, buyers may have to pay a premium ranging from 5 million to 10 million KRW to purchase one.

Following SUVs, eco-friendly vehicles are also expected to play a key role. The dedicated electric vehicles Ioniq 5 and EV6, which were first released in Korea and Europe, are about to launch in the U.S. market. Especially for the Kia EV6, all 1,500 units prepared for pre-order sold out within hours of the reservation opening, signaling a strong market reception.

In line with this trend, Hyundai Motor Group is expanding its investment in eco-friendly vehicles in the U.S. Hyundai Motor Group recently announced that it will invest $7.4 billion (approximately 8.4 trillion KRW) over the next five years to secure future growth engines such as local electric vehicle production, hydrogen, and urban air mobility (UAM).

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