January Hyundai-Kia Electric Vehicle Sales in Europe Reach 6,083 Units
71% Surge Year-on-Year
Strengthened EV Lineup Effective Against Tighter European Regulations
Expansion of Production Bases Including Czech Factory Also Influential
[Asia Economy Reporter Su-yeon Woo] The eco-friendly vehicle strategy of Hyundai Kia Motors, strongly driven by Chung Eui-sun, Executive Vice Chairman of Hyundai Motor Group, has recently begun to show tangible results in the European market. This year, Hyundai Kia Motors has increased electric vehicle sales by more than 70% compared to the previous year, expanding its market share in the stagnant European market.
According to Hyundai Kia Motors on the 19th, electric vehicle sales in Europe reached 6,083 units in January this year, a sharp increase of 71.3% compared to the previous year. The Kona EV was the most chosen by European consumers with 2,442 units sold, up 28.5% from the previous year, followed by the Niro EV with a 118.5% increase to 1,593 units, and the Ioniq EV and Soul EV recording double-digit growth with 1,104 and 944 units respectively.
Until 2018, Hyundai Kia Motors’ monthly average electric vehicle sales in Europe were only about 1,200 units, but last year it rose to around 3,600 units, and in January this year, it surpassed 6,000 units per month.
Based on the European Automobile Manufacturers Association (ACEA) standards, the proportion of eco-friendly vehicles in Hyundai Kia Motors’ European sales also rose to 20.3%, an increase of 7.6 percentage points from the previous year, marking an all-time high. Sales of Hyundai Kia Motors’ eco-friendly vehicles, including electric vehicles, hybrids, plug-in hybrids, and hydrogen fuel cell vehicles, surged 63.5% year-on-year to 15,311 units.
This is interpreted as a result of strengthened carbon dioxide emission regulations in Europe this year, which led to a reduction in internal combustion engine vehicle sales and a rapid increase in eco-friendly vehicle sales centered on electric vehicles. In preparation for regulatory changes in Europe, Hyundai Kia Motors has long been considering various countermeasures, such as strengthening its electric vehicle lineup and expanding production bases.
Recently, Hyundai Motor officially announced that it will begin producing the Kona EV at its Czech plant starting next month to expand the supply of eco-friendly vehicles in the European region. This is a bold decision to locally produce the Kona EV in Europe, which has been popular and experiencing supply shortages.
Increasing overseas production for Hyundai Motor, where a strong labor union is established, is not an easy task. Industry experts interpret that the strategic judgment regarding the rapidly growing European eco-friendly vehicle market and the strong will of the CEO made it possible to decide on expanding production at the Czech plant. Thanks to this strategic judgment, Hyundai Kia Motors has shown an upward trend in market share despite the recent stagnation in the European automobile market.
According to ACEA, Hyundai Kia Motors’ market share in Europe was 7% in January this year, up 0.3 percentage points from the same month last year. Sales volume was 79,458 units, down 3.9%. Since the beginning of this year, the European automobile market has contracted due to uncertainties caused by Brexit (the United Kingdom’s withdrawal from the European Union) and pre-demand due to strengthened emission regulations, resulting in a decrease in Hyundai Kia Motors’ sales volume.
However, considering that automakers such as Renault (-16.4%), Ford (-18.6%), and Daimler (-10.1%), which fiercely competed with Hyundai Kia Motors in the European market last month, all recorded double-digit sales declines, Hyundai Kia Motors is evaluated to have performed well by differentiating itself in the eco-friendly vehicle sector.
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