Intensified US Electric Vehicle Market... Hyundai Drops to 4th Place

US Cox Automotive Reports Q3 Electric Vehicle Sales Performance

Ford's electric pickup truck F-150 Lightning

[Asia Economy Reporter Choi Dae-yeol] Hyundai Motor Group fell to 4th place in the U.S. electric vehicle market in the third and fourth quarters of this year. Until the first half of the year, it was the second best-selling brand after Tesla, but competition intensified as local makers such as General Motors (GM) and Ford continuously launched new models.

According to the third-quarter U.S. electric vehicle sales data released on the 17th by market research firm Cox Automotive, Hyundai, Kia, and Genesis sold 12,046 units locally in the third quarter of this year. The dedicated electric vehicles Ioniq 5 (Hyundai) and EV6 (Kia) each sold close to 5,000 units, and the GV60 (Genesis) also recorded sales of over 800 units.

The total electric vehicle sales volume in the U.S. for the third quarter was 205,682 units. This represents an increase of nearly 70% compared to the same period last year. Since the Biden administration took office, it has driven the expansion of electric vehicle adoption, and with automakers continuously launching new models, the overall market is rapidly growing.

Hyundai Motor's exclusive electric vehicle Ioniq 5 Ulsan production line

Hyundai Motor Group's share of the electric vehicle market was estimated at around 5.9%. Although total sales increased, its market share has declined. Until the first half of this year, Hyundai Motor Group held about a 9% market share in the U.S., ranking second after Tesla.

The group's ranking also dropped. Ford, led by the electric SUV Mustang Mach-E and the electric pickup truck F-150 Lightning, sold 18,257 units, and GM, the largest local maker (including Cadillac and GMC brands), sold 15,156 units, both surpassing Hyundai Motor Group. Ford's market share was 8.9%, and GM's was 7.4%.

Tesla remains in first place, selling an estimated 131,024 units. Tesla's market share reaches 65%, meaning two out of every three electric vehicles sold in the U.S. are Teslas. However, Tesla's share has also decreased from past levels exceeding 80%.

Vehicles produced at the Tesla factory in Austin, Texas, USA

Based on cumulative figures up to the third quarter of this year, Hyundai Motor Group leads with a 7.9% market share, ahead of Ford (7.2%) and GM (4.0%), but the outlook is challenging. The group has yet to establish a local production system, and due to the Inflation Reduction Act (IRA), it is expected to lose price competitiveness. Hyundai Motor Group currently meets North American electric vehicle demand entirely through exports from Korea.

The Inflation Reduction Act eliminated the $7,500 (approximately 10 million KRW) tax credit benefit for electric vehicles produced outside North America. Electric vehicles sold so far were eligible for tax credits under contracts made before the law took effect, but going forward, this will no longer apply, effectively increasing prices by about 10 million KRW. Local electric vehicle startups such as Rivian and Lucid, as well as European makers including BMW, Mercedes-Benz, and Volkswagen, are also strengthening their local market strategies by continuously launching new models, which adds pressure on Hyundai Motor Group.

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