Hyundai Motor, Kia eco-friendly car sales surpass 200,000 units in U.S.

The all-new Santa Fe Hybrid [Courtesy of Hyundai Motor]

South Korean automakers Hyundai Motor Co. and Kia Corp. saw their eco-friendly vehicle sales in the United States exceed 200,000 units during the first nine months of this year, with a 61.6 percent surge compared to the same period last year.

According to both companies on Sunday, Hyundai Motor and Kia’s combined sales of eco-friendly vehicles in the U.S. totaled 213,270 units for the first three quarters of this year. Hyundai Motor accounted for 119,556 units, while Kia contributed 93,714 units.

The substantial increase in sales is significantly higher compared to the figures from the same period last year.

Hyundai Motor saw a 66.4 percent surge, while Kia 55.8 percent, leading to an overall growth of 61.6 percent. The actual number of units sold also saw a significant rise, with about 80,000 more units sold compared to a year ago. The boost is attributed to the success of both electric and hybrid vehicles in the U.S.

Demand for Hyundai Motor and Kia’s flagship hybrid models was strong in September.

The Hyundai Santa Fe Hybrid saw a remarkable 97 percent surge in sales in September compared to the same month last year, while the Tucson Hybrid recorded a 95 percent increase, setting a new monthly sales record.

The overall performance of hybrid vehicles for the first three quarters also showed a robust growth of 61.6 percent compared to the same period last year.

In the realm of electric vehicles, the figures are equally impressive, with sales totaling 71,111 units, marking a 48.9 percent increase over the previous year.

However, hydrogen fuel cell electric vehicles (FCEV) faced a slump, with only 173 units sold during the same period, which is a 49.9 percent decline compared to last year.

The improved performance of eco-friendly vehicle sales in the U.S. can be largely attributed to the incentives provided under the U.S. Inflation Reduction Act (IRA) that came into effect in August of last year.

Both Hyundai Motor and Kia focused on the commercial market, particularly in leasing and car rental to take advantage of the tax benefits offered by the IRA. Although the tax deductions under IRA apply only to vehicles assembled in North America, commercial vehicles have an exception, allowing them to receive subsidy benefits.