"Hyundai and Kia Excel in the US with 'Monthly Best Sales,' but Reasons to Worry Remain"

Hyundai Motor·Kia Achieve Record Monthly Sales and Best August Performance Ever
Nearly Double the Market Share Gap with Japan's Honda Compared to Last Year
Eco-Friendly Vehicle Sales Increase... Potential Sales Cliff Ahead Due to IRA

Hyundai Motor Dealership in Colorado, USA

[Asia Economy Reporter Choi Dae-yeol] Hyundai Motor Company and Kia's vehicle sales in the United States last month increased by double digits compared to a year ago. This contrasts with the sales decline of major Japanese makers such as Toyota and Honda competing locally.

According to announcements from Hyundai and Kia's local subsidiaries and foreign media on the 2nd, Hyundai sold 69,437 units (including 5,102 Genesis vehicles). This represents a 13.5% increase compared to the same period last year, marking the highest monthly sales so far this year and the best August sales performance ever recorded.

Sales were strong across all models, including sedans like the Elantra (known domestically as Avante) and Accent, as well as SUVs and pickup trucks such as the Santa Fe and Santa Cruz. Randy Parker, President of Hyundai Motor America, said, "Sales performed well this month as inventory began to rebound."

Kia sold 66,089 units during the same period, a 22.4% increase. The company also emphasized that this was the best August sales performance in its history. Sales increased evenly, centered on RV models such as the Sportage, Sorento, and Telluride.

The Ioniq 5, selected as the Car of the Year at the New York International Auto Show this April. Hyundai Motor Company CEO Jang Jae-hoon, Vice President Lee Sang-yeop, and Vice President Luke Dongkerbolge are taking a commemorative photo.

The combined sales volume of Hyundai and Kia reached 135,526 units, up 17.7% from the same period last year. Notably, the sales performance of Japanese automakers who also released their results on the same day stood out. Honda, which was competing for fifth place with Hyundai Motor Group until just last year, sold only 71,461 units, nearly a 40% decrease during the same period. Toyota, the local market leader, sold about 169,626 units, down approximately 10%.

When averaging the sales volumes of the companies that disclosed their results on this day, sales decreased by about 8.6% compared to last month. Although the semiconductor supply shortage and resulting production disruptions and inventory shortages have somewhat improved, the industry expects that it will take more time before these issues are fully resolved.

Eric Watson, Vice President of Kia America, said, "Considering the ongoing supply issues across the industry, achieving the highest sales performance last month proves the competitiveness of our products and employees."

Kia factory in West Point, Georgia, USA

Despite receiving a decent report card, the future outlook is not easy. The Inflation Reduction Act (IRA), which took effect last month in the U.S., has worsened the price competitiveness of eco-friendly vehicles such as electric vehicles sold locally.

According to the company, Hyundai and Kia's local sales of eco-friendly vehicles (electric vehicles, hybrids, and plug-in hybrids) reached 14,903 units, nearly an 80% increase compared to the same period last year. In particular, the dedicated electric vehicles Ioniq 5 and EV6 were recognized for their product quality and price competitiveness, resulting in pure electric vehicle sales more than doubling compared to last year. However, prices are expected to rise going forward, making a sales decline inevitable.

For eco-friendly vehicles from Hyundai and Kia contracted after the implementation of the Inflation Reduction Act locally, tax credits of up to $7,500 are not available. Hyundai Motor Group currently does not have any locally produced eco-friendly models. Production of some SUV models locally is scheduled to begin around the end of this year or early next year.

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