European Car Market Shrinks Due to War and Parts Shortage, Hyundai and Kia Up 10%+

European Automobile Manufacturers Association, May Complete Vehicle Sales Summary

Hyundai Motor Company at the customs terminal on the outskirts of Saint Petersburg, Russia

[Asia Economy Reporter Choi Dae-yeol] Hyundai Motor and Kia increased their sales in Europe by nearly double digits compared to a year ago last month. While most major manufacturers saw a decline in sales, Hyundai and Kia boosted their sales, solidifying their position as the third largest market share holder.

According to the European Automobile Manufacturers Association's report on last month's vehicle sales, Hyundai and Kia sold 96,556 units (combined EU+EFTA+UK), marking a 9.8% increase compared to May of last year. Their market share in May was 10.2% (Hyundai 5.1% · Kia 5.1%), up 2.1 percentage points from the same period.

Volkswagen, ranked first in Europe, sold 239,982 units, down 21.5% from a year ago, while Stellantis, in second place, sold 191,489 units, a 14.6% decrease. Their market shares also slightly declined to 25.3% and 20.2%, respectively. Renault, which fell to fourth place behind Hyundai and Kia, recorded 81,307 units, down 9.8%. Among local manufacturers, Renault has a significant exposure to Russia, and due to the war's impact, new car demand sharply declined, leading to reduced sales. Renault's market share stands at 8.6%.

Kia's first dedicated electric vehicle EV6

Among major manufacturers, only Hyundai Motor and Kia, along with Toyota (including Lexus) and Nissan, saw an increase in sales last month. Despite ongoing supply shortages of vehicle semiconductors and other parts, the impact of the Russian invasion has been greater on local manufacturers in Eastern Europe, where parts supply is more concentrated. The total new car sales market in Europe last month was 948,149 units, shrinking 12.5% compared to a year ago.

The increase in Hyundai and Kia's sales is attributed to strong performance in eco-friendly vehicles such as electric cars and locally strategic models. Hyundai's SUV Tucson sold 10,866 units in total, with hybrids and plug-in hybrids accounting for about half. Kia's Ceed was the best-selling model among Hyundai and Kia vehicles, with 13,456 units sold, and the Sportage sold 10,323 units. The Ioniq 5 and EV6, developed as dedicated electric vehicle models, have surpassed 50,000 cumulative sales locally.

From January to May this year, Hyundai and Kia's sales in Europe totaled approximately 450,000 units, with a market share of 10.0%, up 2.5 percentage points compared to the same period last year.

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