Hyundai, Kia US sales up 32% in Nov; eco-friendly cars jump

Sales of the Hyundai IONIQ 5 and the Kia EV6, however, fell month-on-month as the automakers sell more in Europe and South Korea

Han-Shin Park 1

2022-12-02 16:35:03 psh@hankyung.com

Automobiles

South Kora’s top automaker Hyundai Motor Group enjoyed strong demand in the US last month as the improving automotive chip supply situation bolstered sales of sport utility vehicles with internal combustion engines. Sales of eco-friendly models also surged.

Hyundai Motor Co. and Kia Corp. sold a combined 125,013 units in the world’s second-largest automobile market during November, up 32.1% from a year earlier, according to the group on Friday.

Hyundai Motor’s sales including its premium sub-brand Genesis rose 38.4%, while those of Kia increased 25.1%. The growth topped a 10.2% increase for Toyota Motor Corp. and a 6.1% decline for Honda Motor Co.

Popular SUVs such as the Hyundai Tucson and the Kia Sportage led the two companies’ US sales increase in November.

The group’s automakers sold a total of 14,882 eco-friendly vehicles last month, 75.4% higher on-year, with electronic vehicle sales nearly doubling from November 2021.

IONIQ 5, EV6 SALES DOWN ON-MONTH

Their EV sales, however, fell from the previous month as the US has been providing tax credits for EVs made only in North America since mid-August. Hyundai in October broke ground on a $5.4 billion EV and battery plant in the US state of Georgia with a schedule to start commercial operations of the factory with an annual capacity of 300,000 EVs in the first half of 2025.

Hyundai and Kia have yet to produce the eco-friendly models there.

Sales of the Hyundai IONIQ 5 crossover dropped 24.5% to 1,193 units on-month, while those of the Kia EV6 nearly halved to 641 units during the period. The two models made up about two-thirds of the Hyundai Motor and Kia’s total EV sales in the US.

The KIA EV6 unveiled during the press day at the Los Angeles Auto Show, in Los Angeles, California on Nov. 17, 2022 (Courtesy of Reuters, Yonhap)

A Hyundai Motor Group official said the US Inflation Reduction Act, which removed the incentives for EVs made outside the region, did not contribute to the monthly decline.

“We sold some of EVs earmarked for export to the US to Europe and South Korea where many customers were waiting for them,” said the official. “Most of models sold in November were subsidized because they were contracted before the IRA took effect.”

Write to Han-Shin Park at psh@hankyung.com
Jongwoo Cheon edited this article.