No subsidy, no problem: Hyundai, Kia make top 10 US list for EV sales

The Hyundai IONIQ 5 placed seventh and the Kia EV6 10th in the first half of the year

Hyundai Motor's IONIQ 5
Hyundai Motor's IONIQ 5
Sungsu Bae 1
2023-07-24 10:15:13 baebae@hankyung.com
Automobiles


Hyundai Motor Co. and Kia Corp. in the first half of the year were among the top 10 in sales of battery electric vehicles (EVs) in the US despite receiving no subsidies from Washington's Inflation Reduction Act (IRA), which took effect a year ago.

The Korea Automobile and Mobility Association on Sunday said the Hyundai IONIQ 5 from January to last month finished seventh on the American market with 13,641 units and the Kia EV6 10th with 8,328. Among the top 10 bestselling models in the US, only these two models plus Tesla's Model X did not qualify for IRA subsidies.

Kia's EV6
Kia's EV6

After the IRA, which subsidizes EVs only made in North America, was passed in August last year, Hyundai Motor and Kia prepared self-rescue measures to secure their share of the US market. They raised the proportion of commercial sales eligible for subsidies regardless of the IRA through forms like leasing and rental and held promotions like self-incentive payments.

Thus combined EV sales by South Korean companies in the US within the year's first six months like those of plug-in hybrid and fuel-cell models were better than expected with 46,826 units. Despite ineligibility for subsidies, their sales volume rose 5.9% year on year but their market share fell from 10.5% to 7.2%, as analysts said such manufacturers could not completely avoid the effects of the IRA.

Industry pundits urge more active government-level support to boost the presence of domestic companies on the US EV market. Competition among global players in the sector is intensifying, with world No. 1 Tesla this year cutting prices to raise sales despite reduced margins.

Write to Sungsu Bae at baebae@hankyung.com

Hyundai Motor to advance future mobility with nanotechnology

Hyundai Motor to advance future mobility with nanotechnology

(Courtesy of Hyundai Motor Group) Hyundai Motor Group, which seeks to pivot from a fast follower to a game changer in the global auto sector, has unveiled advanced materials technologies that could allow it to lead the mobility transition toward electrification and carbon neutrality.According t

Kia releases latest Sportage to mark model's 30th anniversary

Kia releases latest Sportage to mark model's 30th anniversary

Kia's The 2024 Sportage (Courtesy of Kia) Kia Corp. on Tuesday launched the sale of the 2024 Sportage, South Korea's bestselling mid-size sport-utility vehicle (SUV).Launched in 1993 as "the world’s first urban SUV," the Sportage marks its 30th anniversary this year.Its latest edition off

Hyundai Santa Fe’s full makeover yields boxier look

Hyundai Santa Fe’s full makeover yields boxier look

Hyundai's The All-New Santa Fe, the model's 5th generation (Courtesy of Hyundai Motor) Hyundai Motor Co. on Tuesday premiered a new look for its steady-selling SUV Santa Fe. The complete transformation — its first in five years — emphasizes angularity in a boxy design, marking a shi

Hyundai’s commitment to N brand pays off with over 100,000 car sales

Hyundai’s commitment to N brand pays off with over 100,000 car sales

Hyundai's N performance car racing in a world rally Hyundai Motor Co.'s commitment to high-performance vehicles has paid off with sales of such vehicles exceeding 100,000 units six years after the launch of the N brand. The top South Korean automaker posted cumulative sales of 103,947 N perfor

Hyundai Motor premieres first high-performance EV IONIQ 5 N

Hyundai Motor premieres first high-performance EV IONIQ 5 N

The rear of the IONIQ 5 N – Hyundai’s first all-electric high-performance vehicle under its N brand The IONIQ 5 N – Hyundai Motor Co.'s first all-electric high-performance car under its N brand – made its world premiere on Thursday, with company executives vowing to make

Kia vows to take 10% of Indian market after 1 million car output

Kia vows to take 10% of Indian market after 1 million car output

Kia celebrates the 1 million unit production milestone at its plant in Anantapur, India, on July 13, 2023 (Courtesy of Kia) In celebration of producing 1 million cars from its Indian plant, Kia Corp. has vowed to command 10% of the Indian car market with more diverse models and the addition of

EV9 SUV to be Kia’s 1st EV assembled in US

EV9 SUV to be Kia’s 1st EV assembled in US

Kia launched the EV9 in June Kia Corp. will spend over $200 million to transform part of its assembly plant in the US state of Georgia to manufacture its second all-electric SUV model, the EV9, from the second quarter of next year, the South Korean carmaker said on Thursday.The EV9 with three r

Hyundai Motor chairman visits Intel, seeking stable supply of chips

Hyundai Motor chairman visits Intel, seeking stable supply of chips

Hyundai Motor Group Chairman Chung Euisun (second from left) and Ann-Marie Holmes (third from left), Intel’s vice president of manufacturing, supply chain & operations group, meet on July 7 at Intel Ireland's Leixlip campus in County Kildare (Courtesy of Hyundai) Hyundai Motor Gr

Kia’s Gwangju auto plant gears up for 2nd heyday with EVs

Kia’s Gwangju auto plant gears up for 2nd heyday with EVs

Inside the first Kia AutoLand Gwangju factory on June 29, 2023  GWANGJU, South Jeolla Province -- Kia Corp.'s plant in Gwangju, about 270 kilometers south of Seoul, bustled with workers and cars, including its best-seller Sorento, last week when it hosted a tour for media, making it hard t

Kia to begin EV battery subscription service pilot project

Kia to begin EV battery subscription service pilot project

South Korea's Kia Corp. said on Tuesday it has partnered with Hyundai Capital Services, Shinhan EZ General Insurance, the Seoul Taxi Association, Hanmi Taxi, and Sangrok Transportation for a pilot project that aims to introduce a battery subscription service.The signed memorandum of understand

Hyundai, Kia set fresh H1 sales record in US, beating H1 2021

Hyundai, Kia set fresh H1 sales record in US, beating H1 2021

The 2023 Kia Sportage (Courtesy of Kia) South Korea’s largest automaker Hyundai Motor Co. and its sister company Kia Corp. posted record first-half-year sales in the US this year, amid the growing popularity of electric cars and sport utility vehicles (SUVs). The two automakers said on Su

(* comment hide *}