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Tesla Model 3

[Asia Economy Reporter Choi Dae-yeol] The United States is a market where all global automakers fiercely compete. The large market size and the strong sales of large vehicles with high per-unit margins have a significant impact. Although automakers have to pay dealers tens of thousands to hundreds of thousands of won per vehicle to sell cars, considering that the global market watches U.S. performance closely, it is worth enduring some level of loss.

When looking at the sales performance by brand after hearing that Korean brands did well in the U.S. last month, Hyundai’s sales increased by about 12% compared to January last year. Considering that the total new car sales in the U.S. last month were about 1 million units, down about 10% from January last year, this is a respectable achievement. Among places that sold more than 10,000 units, only Hyundai, BMW, and Tesla saw an increase in sales compared to the previous year.

Hyundai Motor's exclusive electric vehicle Ioniq 5

For Hyundai, the increase in sales of relatively expensive eco-friendly vehicles and sport utility vehicles (SUVs) is encouraging. Together with its group company Kia, they sold more than 10,000 eco-friendly vehicles, and SUVs accounted for over 70% of total models. The cumulative sales of the first dedicated electric vehicle, the Ioniq 5, which began local deliveries last month, exceeded 1,000 units, and Kia’s EV6 will soon be seen on the roads.

However, Hyundai is not in a position to simply celebrate. Although not competing with similar models, Tesla’s upward momentum is formidable. This company, which only makes electric vehicles, sold about 40,000 units, an increase of more than 60% compared to January last year. It has surpassed German luxury brands and is at a similar level to Kia. By manufacturer ranking, it has risen to 9th place. Tesla’s U.S. sales exceeding 40,000 units per month is the first time in 16 months since the summer of 2020.

Considering that it has not exceeded 30,000 units per month since then, and that all other makers are struggling with semiconductor supply shortages, this is a remarkable performance. Although the semiconductor shortage is the same for everyone, Tesla minimized production disruptions by redesigning and adapting. It appears that they have compensated for hardware supply difficulties with their well-honed software capabilities.

Elon Musk, CEO of Tesla

Redefining mobility, or means of transportation, the Tesla brand and its founder and CEO Elon Musk have become cultural phenomena, which is also noteworthy. Although its market share is only about 4%, the industry envies Tesla for proactively addressing the unprecedented supply shortage.

If Tesla scored many points in the second round of the electric vehicle era it opened, the third round of competition for electric vehicle dominance, in which virtually all automakers have declared participation, is expected to heat up further. Toyota, Volkswagen, General Motors (GM), and Stellantis, which led with internal combustion engines, have all finalized their electrification strategies and started taking action. Electric pickup truck models, which are highly preferred by Americans, will be released one after another this year and next year.

Public support is also a strong factor that could accelerate the electric vehicle era, with the president personally driving an electric pickup truck and pressuring to establish a battery ecosystem domestically, a core component of electric vehicles. Will Korean electric vehicles succeed abroad? The conditions are not easy.

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