Hyundai Motor and Kia to Reach '1 Million Cumulative Sales' of Eco-Friendly Vehicles in the US

Hyundai Motor Company and Kia, which set a record for the highest sales ever in the U.S. market last year, are expected to continue their upward trend this year. Having achieved a new milestone of '1.5 million units sold annually' last year, Hyundai Motor Company and Kia are anticipated to set another significant record this year with '1 million cumulative sales of eco-friendly vehicles.'

On the 12th, Hyundai Motor Company and Kia announced that they sold 1,652,821 units in the U.S. market last year, a 12.1% increase compared to the previous year. This is the first time their annual sales in the U.S. exceeded 1.5 million units.

Based on last year's U.S. sales volume, Hyundai Motor Company and Kia ranked 4th in the industry, following GM, Toyota, and Ford. Until 2019, they were ranked 7th, remaining within the top 10. However, starting in 2020, when they began strengthening their sports utility vehicle (SUV) lineup, their ranking gradually improved. They rose to 6th place in 2020, 5th in 2022, and secured 4th place last year.

In the world's second-largest automobile market, Korean-origin brands have grown to a level that threatens the Big 3 (GM, Toyota, Ford). This performance by Hyundai Motor Company and Kia was made possible by gaining recognition for their product competitiveness locally, especially centered on eco-friendly SUVs. Recently, Kia's electric flagship SUV EV9 was selected as the '2024 North American Utility Vehicle of the Year.' As a result, Hyundai Motor Company and Kia have become brands that have won the North American Car of the Year award five times in the past six years.

Another meaningful aspect of last year's record is profitability. It means they did not just sell many cars but also made profitable sales in the U.S. market. This also indicates that American consumers have elevated the brand reputation of Hyundai Motor Company and Kia to the point where they are willing to pay relatively higher prices. Particularly, high value-added eco-friendly vehicles, SUVs, and Genesis luxury cars sold well.

Kia Electric SUV EV9 [Photo by Kia]

Last year, Hyundai Motor Company and Kia sold 278,122 eco-friendly vehicles in the U.S., a 52% increase compared to the previous year. Sales, which were only about 30,000 units in 2020, exceeded 100,000 units in 2021 and approached 300,000 units last year. Market share has steadily remained in the 20% range.

The U.S. eco-friendly vehicle market is rapidly growing due to the U.S. government's electric vehicle subsidy policy that started in 2022. With the implementation of the Inflation Reduction Act (IRA), subsidies are provided only for electric vehicles produced locally in the U.S. Despite challenging circumstances, Hyundai Motor Company and Kia expanded their market share by exploiting policy gaps, such as increasing fleet sales (to corporations, rental car companies, and used car dealers).

This upward trend is expected to continue this year as well. In the second half of this year, Hyundai Motor Group's dedicated electric vehicle plant, Meta Plant America (HMGMA), will begin operations locally in the U.S. Local production will allow them to benefit from electric vehicle subsidies, giving them a strong advantage in sales.

Since first selling eco-friendly vehicles in the U.S. in 2011, Hyundai Motor Company and Kia have sold a cumulative total of 946,962 units as of last year. Considering the sales trend so far, it is expected that they will achieve 1 million cumulative sales of eco-friendly vehicles (including hybrids) within the first quarter of this year. Amid the explosive growth in demand for eco-friendly vehicles in the U.S., Hyundai Motor Company and Kia are working to improve the structure of their U.S. business. Their strategy is to further strengthen their existing advantages and expand sales focused on high value-added vehicles such as eco-friendly cars and SUVs.

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