Kia overtakes Hyundai Motor for first time in U.S. sales

Kia outsold Hyundai Motor in the United States for the first time in January, a shift that underscores intensifying competition within Hyundai Motor Group as demand for sport utility vehicles (SUV) reshapes the market.

The Kia Sportage SUV [KIA]

Kia outsold Hyundai Motor in the United States for the first time in January, a shift that underscores intensifying competition within Hyundai Motor Group as demand for sport utility vehicles (SUV) reshapes the market.

According to U.S. auto sales data for January, Kia sold 64,502 vehicles in the U.S., edging out Hyundai Motor’s 60,794 units, which include sales of its flagship Genesis luxury brand. It marked the first time Kia surpassed its larger sister affiliate in monthly U.S. sales. Hyundai Motor Group sold a combined 125,296 vehicles in the U.S. during the month, its highest January total on record.

The rivalry centers on SUVs, which dominate the U.S. market. American sales data classify SUVs, pickup trucks and vans as light trucks, a category that far outsells traditional passenger cars such as sedans and hatchbacks.

Hyundai’s Tucson remained the group’s top-selling model in January with 14,428 units. But its sales fell from a year earlier. Kia’s Sportage followed closely with 13,984 units, up 23 percent from a year before, narrowing the gap to fewer than 500 vehicles.

Other Kia models posted gains as well. The K4 sedan sold 11,642 units, ranking third among the group’s models in the U.S. The Telluride SUV sold 9,424 units, placing fourth and overtaking Hyundai’s Palisade in the full-size SUV segment.

Hyundai and Kia compete across nearly every SUV category, from subcompact to full-size. Last year, Hyundai led in annual U.S. SUV sales across segments, with the Kona, Tucson, Santa Fe and Palisade each outselling their Kia counterparts — the Seltos, Sportage, Sorento and Telluride.

January’s results suggest that gap is narrowing. Kia’s Seltos and Sportage gained ground on Hyundai’s Kona and Tucson and the Telluride overtook the Palisade.

“If second-generation Telluride sales begin in earnest in the United States starting in February, Kia’s market share will likely rise further,” said Lim Eun-young, an analyst at Samsung Securities.

In the domestic market, where sedans remain popular, Hyundai Motor still leads Kia thanks to its solid lineup, including the Avante, Sonata and Grandeur. Last year, Hyundai Motor sold 712,959 vehicles in Korea, while Kia sold 548,204 units — a gap of more than 160,000 vehicles.

However, as SUVs gain popularity domestically, competition between the two brands is expected to intensify. The share of SUVs in new car sales in Korea rose from 40.1 percent in 2021 each year to reach 51.1 percent in 2025, exceeding half of total sales.

If this trend continues, it could favor Kia, which has a stronger SUV lineup. In Korea, Kia’s SUVs outsell Hyundai Motor’s models across the subcompact, compact and midsize segments.

In particular, the midsize SUV Sorento — the best-selling vehicle in Korea last year — recorded 100,002 units sold, far surpassing Hyundai Motor’s Santa Fe, which sold 57,891 units.

The Hyundai Tucson Turbo [HYUNDAI MOTOR]

Overseas observers are also watching the rivalry between the two brands under one roof with interest.

U.S. automotive magazine MotorTrend recently compared Hyundai Motor and Kia, saying, “The two brands share many similarities and neither has a clear pricing advantage, but preferences vary depending on the ‘vibe.’”

“Hyundai is more conservative and mainstream, which implies certain freedoms and restrictions, [while] Kia has a narrower focus, but this allows it to refine its identity,” the magazine said.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom. BY NAM YOON-SEO [lim.jeongwon@joongang.co.kr]