Hyundai Motor Rises to 4th Place in the US... Surpasses Local Brands, Advances One Step in 2 Years

4th Largest Manufacturer After GM, Toyota, and Ford
Hyundai Motor and Kia Achieve Record Annual Sales

Hyundai Motor Group sold over 1.65 million vehicles in the United States last year, ranking 4th in annual market share by manufacturer for the first time. This marks a one-step rise in two years after surpassing Honda to reach 5th place in 2021.

According to the U.S. sales performance data for last year released on the 4th by major automakers and market research firm Cox Automotive, Hyundai Motor Group sold 1,652,821 units. This represents a 12.1% increase compared to the same period last year. Its estimated market share in the local new car market was 10.7%, ranking fourth among all manufacturers.

[Photo by Yonhap News, EPA]

Stellantis, which competed with Hyundai Motor Group for ranking, is estimated to have sold 1,514,804 units, a decrease of about 2.1% during the same period. While most companies saw sales increase as the local new car market recovered, this company experienced a decline. Its market share also dropped from 11.1% in 2022 to 9.8% last year.

Although Stellantis is a Europe-based company, many former American brands such as Ram, Jeep, and Dodge operate locally. Korean automakers have been recognized for their product competitiveness by surpassing Honda, which had long sold in the U.S., and even local brands last year.

According to data released by Hyundai’s local subsidiary, it sold 801,195 units last year, setting a record for the highest annual sales ever. Monthly sales have been on an upward trend for 17 consecutive months. Among models, the compact sport utility vehicle (SUV) Tucson sold over 200,000 units.

Marty Malick, Vice President of Amazon (first from the right in the photo), Randy Parker, Head of Hyundai Motor America, and Jose Munoz, Chief Operating Officer of Hyundai Motor Group, are posing for a commemorative photo after signing a business agreement at the LA Auto Show last November.
[Photo by Yonhap News, AFP]

Other SUVs such as Santa Fe, Kona, and Palisade also saw steady sales growth. Battery electric vehicles Ioniq 5 and Ioniq 6 sold 46,917 units. Despite expectations of a “sales cliff” due to the inability to receive tax credit benefits on retail sales under the local Inflation Reduction Act (IRA), the company managed to perform well by shifting sales to corporate customers such as rental car companies.

Kia also set a new annual sales record, selling 782,451 units, a 13% increase from the previous year. Various recreational vehicles (RVs) such as Sportage, Telluride, Niro, Seltos, and Carnival led the performance. These models were the best-selling on an annual basis.

The United States has emerged as Hyundai Motor Group’s largest market. Considering the annual sales volume of about 7.3 million units last year, approximately 22% of total new car sales demand is met by the U.S. market. Increased local sales combined with the depreciation of the Korean won have played an important role in Hyundai and Kia achieving record-high performance.

A car showroom in Miami, Florida, USA
[Photo by Yonhap News]

General Motors (GM) ranked first in the U.S. last year, selling nearly 2.57 million units and surpassing Toyota (about 2.23 million units). This marks the second consecutive year GM has held the top spot. Another local manufacturer, Ford, sold about 1.95 million units, ranking third. The local new car sales market is estimated by the industry to have reached about 15.5 million units, the highest level since 2019.

However, the possibility of steady demand growth this year is considered low. As demand suppressed during the COVID-19 period was mostly resolved last year, inventory levels have increased for each company, and signs of rising sales incentives have become clear. High interest rates and the sharp increase in new car prices due to last year’s United Auto Workers strike have also increased consumer burdens, which are seen as negative factors for manufacturers.

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