[Car Talk Forest] Hyundai Surpasses Honda in the US, The Reason Behind Its Rapid Rise

Genesis GV80

[Asia Economy Reporter Changhwan Lee] Hyundai Motor Group has brought good news from the United States starting the new year. Last year’s U.S. sales reached the highest level since their first entry in 1986.

Hyundai Motor and Kia announced that they sold 1,489,118 units in the U.S. last year, marking a 21.6% increase compared to the previous year. This surpassed the previous record of 1,422,603 units set in 2016, breaking the record after five years.

In brand rankings, Hyundai Motor Group ranked 5th for the first time, surpassing Japan’s Honda. Toyota from Japan took 1st place for the first time, pushing General Motors (GM) to 2nd place, followed by Ford in 3rd, Stellantis in 4th, and Hyundai Motor Group in 5th.

Hyundai Motor surpassed Japanese brand Honda in annual sales for the first time in 35 years since entering the U.S. market. Given that Hyundai was once criticized as a copycat of Honda due to the similarity in their names, this is a very encouraging achievement.

Several factors are analyzed to have contributed to Hyundai Motor’s outstanding sales performance. First, sales of recreational vehicles (RVs) increased significantly. As in Korea, SUVs have long surpassed sedans in popularity in the U.S., and Hyundai Motor raised sales by launching various models aligned with this trend.

Last year, Hyundai Motor’s RV model sales in the U.S. reached 509,957 units, accounting for 64.7% of total sales. Kia also recorded 447,932 units, making up 63.9%.

The popularity of eco-friendly vehicles also contributed to the sales increase. Last year, Hyundai Motor Group’s sales of eco-friendly vehicles such as hybrid electric vehicles (HEVs) and electric vehicles (EVs) are estimated to have exceeded 100,000 units, more than tripling compared to the previous year.

The luxury brand Genesis is also extremely popular. Last year, Genesis vehicles sold in the U.S. totaled 49,621 units, marking a historic high with a 202.9% increase compared to the previous year.

Although golf legend Tiger Woods was involved in a traffic accident while driving a Genesis early last year, he was not seriously injured, and the vehicle gained a reputation locally for its excellent safety. This reflects the growing recognition among Americans of Hyundai Motor’s improving quality.

Excellent supply chain management is also cited as a key to their continued success. Although the shortage of automotive semiconductors has impacted the industry for two years, Hyundai Motor Group’s response is considered relatively superior.

Unlike many other automakers whose sales declined last year due to difficulties in responding to the semiconductor shortage, Hyundai Motor Group’s sales increased by about 5% compared to the previous year. This is attributed to their thorough supply chain and inventory management, which helped them effectively handle the semiconductor crisis.

Expectations are high for Hyundai Motor’s European market performance for last year, which will be released around mid-month. The industry is paying close attention to whether Hyundai Motor Group, turning crisis into opportunity, can rise beyond the U.S. market to become a global leader.

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