Hyundai and Kia achieved their highest-ever first-half sales performance in the US market. Despite high interest rates, concerns over an economic slowdown, and a stagnation in electric vehicle (EV) demand (EV chasm), the automakers maintained their growth trajectory driven by a sharp rise in hybrid and SUV sales.
According to Hyundai Motor Group on July 2, combined first-half US sales for Hyundai and Kia rose 3% year-on-year to 920,383 units. Hyundai sold 489,656 units, including its luxury brand Genesis, marking a 2.7% increase, while Kia posted a 3.4% gain with 430,727 units. This marks an all-time first-half sales record for Hyundai, Kia, and Genesis alike.
Analysts attribute this record-breaking performance largely to eco-friendly vehicles. First-half sales of eco-friendly models by Hyundai and Kia surged 47% to 265,514 units, clearing the 250,000-unit threshold for the first time. This means eco-friendly vehicles accounted for more than three out of every ten cars (31.2%) sold in the US.
Notably, sales of hybrid electric vehicles (HEVs) skyrocketed 65.5% to 225,321 units. Hyundai recorded 114,870 units (up 50%) and Kia logged 110,451 units (up 85.3%), with both companies writing new all-time highs. In contrast, EV sales saw a 9.7% decline, dropping to 40,193 units.
Industry insiders evaluate that building a diverse hybrid lineup across various vehicle segments allowed the automakers to respond swiftly to shifts in local demand.
In particular, hybrid sales grew around core volume SUVs, such as the Tucson, Santa Fe, Sportage, Sorento, and Carnival, while sedans like the Elantra and K4 also saw steady volume growth.
Product competitiveness centered on SUVs is also cited as a key factor behind the strong performance. For Hyundai, sales were led by the Tucson (117,612 units), Elantra (79,839 units), and Santa Fe (64,003 units). For Kia, the Sportage (94,907 units), Telluride (73,602 units), and K4 (73,579 units) served as the primary volume drivers. Most of these models are compact and mid-size SUVs or practical sedans that enjoy high preference in the US market.
However, challenges remain for the second half of the year. US automotive tariff policies, alongside a projected interest rate hike, are expected to influence local demand. The slowdown in the EV market's growth also persists.
In response, Hyundai Motor Group is boosting its adaptability by expanding local US production and accelerating the full-scale operations of its Hyundai Motor Group Metaplant America (HMGMA). The group plans to sharpen its competitive edge by expanding the supply of hybrids and leveraging its strengths in the SUV segment.
"Product competitiveness and an aggressive strategy to expand local production are shoring up sales for Hyundai and Kia in the US market," an industry insider projected. "If they continue to improve their sales mix with a focus on hybrids, they are highly likely to maintain robust performance through the second half of the year."
Kim Jeong-gyu