Hyundai Motor and Kia Emerging as Profit Centers in 'Europe'

[Asia Economy Reporter Yoo Hyun-seok] Europe is emerging as a key market for Hyundai Motor Company and Kia. Sales have been continuously increasing year-on-year from last year through this year. The full-scale sales of eco-friendly vehicles are cited as the main reason.

According to Hyundai Motor Group on the 30th, as of the first quarter, global wholesale sales were 903,000 units for Hyundai and 686,000 units for Kia, down 9.7% and 0.6% respectively compared to the same period last year. The global semiconductor supply shortage had an impact.

Globally, sales decreased or only slightly increased in most regions. Hyundai’s sales dropped 18% domestically, 7.2% in North America, and 15.4% in India. Other regions saw a 1.3% increase. Kia also saw a 6.5% decrease domestically, but sales increased 1.8% in North America and 9.5% in India. However, both Hyundai and Kia had regions where sales increased significantly: Europe. Hyundai sold 139,000 units, up 17.4% year-on-year, and Kia sold 138,000 units, up 9.3%.

In particular, the European market has been steadily growing year-on-year from last year through the first quarter of this year. Hyundai’s growth rates from Q1 to Q4 last year were 0%, 109.3%, 1.9%, and 5.4%, respectively. Kia, except for a 6.6% decrease in Q4 last year, grew 7.6%, 104%, and 7.0% from Q1 to Q3.

The growth factor is interpreted as the full-scale sales of eco-friendly vehicles. In the first quarter, Hyundai’s global electric vehicle sales increased 97.1% year-on-year. Hyundai explained that strong domestic and European sales of the Ioniq 5 and the start of U.S. sales contributed to this growth.

Additionally, Kia’s sales increased from 63,000 units in Q1 last year to 110,000 units in Q1 this year. Especially in Western Europe, the share of eco-friendly vehicles rose by more than 5 percentage points from 28.5% in Q1 last year to 33.6% in Q1 this year. Kia explained that growth was driven by strong sales of the Niro and EV6, as well as the addition of new eco-friendly vehicle lineups.

Hyundai and Kia’s eco-friendly vehicle sales are expected to continue. Lee Sang-heon, a researcher at Hyundai Motor Securities, said, "The global electric vehicle market is expected to maintain solid growth momentum, supported by strengthened environmental regulations and increased infrastructure investment in major countries such as the U.S. and Europe." He added, "Hyundai’s first-quarter electric vehicle sales reached 52,000 units, with a sales share of 5%. Among these, the Ioniq 5 accounted for 30,000 units, showing strong domestic and European sales, and U.S. sales are expected to fully ramp up."

Cho Soo-hong, a researcher at NH Investment & Securities, said, "Strengthening brand status in advanced markets such as the U.S. and Europe is a mid- to long-term positive factor. In 2022, Kia ranked first among all brands in the U.S. Vehicle Dependability Study (VDS)." He explained, "The EV6, the first model on the dedicated electric vehicle platform (E-GMP), was selected as the European Union Car of the Year. Improved product competitiveness is expected to strengthen brand status in advanced markets."

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