Hyundai Motor and Kia Rapidly Chase Japan in the US... Only Toyota Ahead

Genesis and Electric Vehicles Lead to Significant Rise in Status in the US
Market Share at 11.6% as of June

[Asia Economy Reporter Yoo Hyun-seok] Hyundai Motor Company and Kia have significantly elevated their status as automakers in the United States. Despite the global semiconductor shortage for vehicles, they are performing well in the U.S. market, narrowing the market share gap with Japanese carmakers. Along with the growth of the premium brand Genesis, they are expanding their market share by leveraging advanced electric vehicle technology compared to Japanese cars.

According to automakers on the 5th, Hyundai and Kia's combined market share in the U.S. last month was 11.6%, ranking 5th among companies that disclosed their U.S. sales volume. General Motors (GM) was first with 17.4%, followed by Toyota (14.6%), Ford (13.2%), and Stellantis (11.8%) in third and fourth place, respectively.

Hyundai and Kia had previously lagged behind Japan's Honda and Nissan in market share, but since last year, they have either overtaken or widened the gap. In 2019, Hyundai and Kia's market share was 7.8%, trailing Honda (9.4%) and Nissan (8.1%). However, in 2020, they recorded an 8.4% share, surpassing Nissan (6.2%) for the first time since 2013. Last year, their share rose to 9.9%, overtaking Honda (9.7%) as well.

Especially this year, they are further widening the market share gap with these automakers. The average market share for Hyundai and Kia through June this year is 10.2%, which is approximately 3 to 5 percentage points higher than Honda (7.4%) and Nissan (5.6%). The gap with Toyota (15.2%) is also gradually narrowing.

The increase in Hyundai and Kia's market share in the U.S. is attributed to the strong performance of the premium brand Genesis and increased sales of the Ioniq 6 and EV6, built on the dedicated electric vehicle platform E-GMP. Hyundai's Genesis sold 15,246 units in the U.S. last year. This year, sales have reached 25,668 units, an increase of over 10,000 units compared to last year. If this trend continues, surpassing 50,000 units this year is expected.

Electric vehicles are also growing rapidly. Hyundai's Ioniq 6 has been sold in the U.S. since December last year, and the EV6 since February. The total cumulative sales this year are 13,692 units for the Ioniq 6 and 12,568 units for the EV6. Bloomberg News published an article last month titled "Sorry Elon Musk. Hyundai Is Quietly Dominating the EV Race," highlighting Hyundai and Kia's rapid pursuit of Tesla, which still holds the top spot in the U.S. electric vehicle market.

However, Japanese cars are evaluated as lagging behind Hyundai and Kia in electric vehicles. Toyota recently launched the pure electric bZ4X based on the dedicated e-TNGA platform. The XLE front-wheel-drive model of this vehicle has a U.S. EPA estimated range of 252 miles (about 403.2 km) per charge, and the all-wheel-drive model has 228 miles (about 367 km). This is less than the Ioniq 5 Long Range Single Motor trim's 303 miles (about 488 km) and the EV6's 310 miles (about 499 km).

Professor Kim Pil-su of the Department of Automotive Studies at Daelim University explained, "In the past, Japanese automakers were synonymous with quality, but that perception has changed a lot now," adding, "Japanese companies are stagnant, but Hyundai Motor Group has improved in quality and consumer image." He further stated, "Hyundai and Kia's electric vehicles are emerging as world-class, but Japanese cars remain too focused on hybrids, leading to a Galapagos syndrome."

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