Hyundai Motor Group enjoys high electric vehicle demand in Europe

[Photo provided by Hyundai Motor]

South Korea’s Hyundai Motor Group is enjoying strong sales in Europe, the world’s second-largest market for electric vehicles (EVs), offering an opportunity for the auto giant to expand its overseas presence.

According to Hyundai Motor Co. and Kia Corp. on Sunday, the combined sales of EVs in Europe stood at 33,831 units in the first quarter. Hyundai Motor sold 15,945 EVs and Kia 17,886 units.

The figure is higher than the combined sales of EVs in Korea and the U.S. EV sales in Korea reached 16,168 units during the same period and in the U.S. 14,703 units.

Demand for EV leasing, in the meantime, has grown in the U.S. as EVs sold for leases are still eligible for tax credit of up to $7,500 per unit regardless of whether they were assembled in the country under the IRA.

According to the Peterson Institute for International Economics (PIIE), an American independent research institution, EV leasing rates increased from 9.7 percent of new EVs entering the market in December 2022 to 34.3 percent in March this year.