Hyundai, Kia near 1m eco-friendly car sales in US

Unveiled in November 2023, Kia's EV4 concept sedan (left) and EV3 crossover showcase sustainable materials and bold designs, hinting at a potential 2025 release for affordable electric vehicles starting around $30,000. (Hyundai Motor Group)

Hyundai Motor Group, following a record-breaking year with US sales surpassing 1.6 million Hyundai and Kia vehicles, is setting their sights high in the US this year to reach a cumulative sale of 1 million eco-friendly vehicles since 2011 and 300,000 luxury Genesis cars, leveraging their strong sales momentum and expanding their eco-friendly and high-end vehicle lineups.

Last year, Hyundai and Kia sold a combined 1.6 million vehicles in the US, an increase of 12 percent from 2021 and the highest annual sales they ever achieved. They surpassed the 1.5 million mark for the first time, which only six other brands managed to do in 2023. Hyundai Motor, including its Genesis luxury brand, sold over 873,000 vehicles, crossing the 800,000-unit threshold for the first time. Genesis, in particular, experienced its best sales year. Kia also had an exceptional year, with sales nearing 780,000 units.

Building on this success, Hyundai and Kia are concentrating on eco-friendly and luxury vehicles in 2024. They are close to achieving a significant milestone in the US: 1 million eco-friendly vehicle sales since the introduction of the Sonata and K5 HEVs in 2011.

So far, they have sold close to 967,000 eco-friendly vehicles, which break down into roughly three-quarters of hybrids, about a fifth of electric vehicles, and the rest of hydrogen electric vehicles. Their sale of over 278,000 eco-friendly units last year, which was more than any other manufacturer except for Tesla, positions them to exceed the 1 million mark early this year.

Key to this goal are new models like the EV9, named the 2024 North American Car of the Year in the utility category, and the IONIQ 6, a finalist for Passenger Car of the Year. The EV9 is slated for production in Georgia, which will likely enhance its market appeal due to tax incentives. The EV9 is a midsize SUV that will compete with popular models like the Toyota Highlander and the Ford Explorer.

Hyundai Motor Group will start operating its dedicated EV plant this year, showing its commitment to expanding its share of the US EV market, which was 7.5 percent in 2023 behind Tesla.

For Genesis, Hyundai's luxury arm, the US market is proving increasingly lucrative. Continuing its current growth trajectory, Genesis is expected to reach 300,000 cumulative sales in the US by the third quarter of this year ever since it became a separate brand in 2015. It has sold over 250,000 vehicles so far, and it is growing faster than any other luxury brand in the US. Genesis is planning to launch the GV80 Coupe and an updated GV80 model this year to appeal to the large SUV market.

"Last year's total sales topping 1.6 million units really show how Hyundai and Kia have evolved from being seen as just 'bang-for-the-buck' options to becoming go-to brands in the US. This shift is all thanks to our focus on quality, efficiency and a brand identity that's really clicking with American buyers," said Hyundai Motor Group official.

By Moon Joon-hyun(mjh@heraldcorp.com)