Hyundai Motor, Kia gear up to break sales record in U.S.

Luxury, eco-friendly cars expected to lead growth in 2024

By Lee Min-hyung, The Korea Times - Hyundai Motor and Kia are gearing up to renew their combined sales record in the U.S. this year by extending their winning streak with value-added luxury and eco-friendly vehicles.

The U.S. is emerging as a key strategic market for Korean carmakers, after they surprised the market with a robust sales growth of 12.1 percent in 2023 from a year earlier. This is a record high, and they expect the sales growth to continue even throughout 2024, as demand increases gradually for electric vehicles (EV) and other cash cow vehicle models sold by Genesis, the luxury vehicle brand of Hyundai Motor. Decent sales of recreational vehicles have also propped up their sales, according to Hyundai Motor.

A spokesman at the carmaker said Hyundai and its smaller affiliate Kia are no longer considered price-competitive vehicle manufacturers, but rather brands with strong identities.

“Customers from the U.S. are no longer hesitant to purchase vehicles from Hyundai Motor and Kia, mostly due to their enhanced brand power, as was shown by the recent sales growth,” an official from Hyundai Motor said.

The company remained confident over setting a new sales record this year again by pursuing a strategy of selling value-added and eco-friendly cars.

Last year, the two carmakers achieved outstanding sales growth of 52.3 percent in sales for eco-friendly vehicles, including EVs. Their sales portion accounted for 16.8 percent in 2023, a five-fold growth from three years earlier.

Hyundai and Kia are having more influence in the U.S. eco-friendly vehicle market, according to data, topping 20 percent market share for three consecutive years since 2021. This is twice as high as their global market share of around 10 percent.

Sales for Genesis vehicles are also on a gradual rise in the world’s largest economy. Genesis made its debut in 2015, and its accumulated sales in the U.S. topped 250,000. The figure is estimated to top the symbolic level of 300,000 sometime before the end of the third quarter of this year.

Genesis aims higher with the planned launch of its GV80 Coupe and GV80 facelift, which recently made their debut in Korea. As demand for SUVs remains aggressive in the U.S., Genesis expects the launch of the luxury SUVs to help boost Hyundai Motor Group's overall sales there.

Source: https://www.koreatimes.co.kr/www/tech/2024/01/419_366771.html 

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