Hyundai and Kia, two leading South Korean carmakers, experienced a 5.9 percent increase in electric vehicle (EV) sales in the United States during the first half of the year. The rise in sales reflects the growing trend of electrification in the automotive industry. According to the Korea Automobile & Mobility Association (KAMA), Hyundai and Kia sold a combined 46,826 EV models in the US from January to June, compared to 44,233 units during the same period last year.
The EV market in the US is expanding rapidly, with a total of 655,699 EVs sold in the first half of the year. This represents a 25 percent increase from the previous year. The market includes various types of EVs, such as battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), and hydrogen fuel-cell electric vehicles (FCEVs).
While Hyundai and Kia saw growth in their EV sales, their overall market share in the US EV market declined from 10.5 percent to 7 percent during the first six months of this year. Despite this setback, two all-electric Korean models, Hyundai’s Ioniq 5 and Kia’s EV6, made it to the list of top 10 bestselling EV models in the US for the first half of the year.
Other notable contenders on the list include Tesla Inc.’s Model Y, Model 3, and Model X, General Motors Co.’s Bolt and Bolt EUV, Volkswagen Group’s ID.4 SUV, and Ford Motor Co.’s Mustang Mach E SUV and F Series light pickup truck.
In addition to the challenges posed by market competition, Hyundai Motor Group is also facing obstacles due to the Inflation Reduction Act (IRA) signed into law by US President Joe Biden. The IRA provides up to $7,500 in tax credits to buyers of EVs assembled only in North America. This has raised concerns that Hyundai Motor and Kia could lose ground in the US market since they manufacture most of their EVs at domestic plants for export to the US.
To address this issue, the Korean automotive group is building a dedicated EV and battery plant in Georgia, with production set to begin in the first half of 2025. Hyundai Motor has already started producing all-electric GV70 SUVs, under its independent Genesis brand, at its Alabama plant.
Overall, Hyundai and Kia’s EV sales growth in the US demonstrates the increasing demand for electric vehicles. However, they will need to navigate various challenges, including market competition and government policies, to maintain their position in the rapidly evolving EV market.
