"Highest Market Share in 8 Years"... Hyundai Motor Group's Rapid Growth in the US Despite COVID-19

US Market Share at 8.6% from January to November Last Year

[Asia Economy Reporter Kim Ji-hee] Hyundai Motor Group recorded its highest market share in the U.S. automobile market in eight years since 2012 last year. While competitors were shaken by the COVID-19 pandemic, Hyundai expanded its presence through strengthening its sport utility vehicle (SUV) lineup and aggressive marketing.

On the 30th of last month (local time), The Wall Street Journal cited automotive market research firm Wards Intelligence, reporting that Hyundai Motor Group's market share in the U.S. from January to November last year was 8.6%. This figure represents a 0.8 percentage point increase compared to the same period the previous year (7.8%), marking the largest growth among global automakers. It is the highest annual market share since 2012.

The driving force behind Hyundai Motor Group's U.S. performance in 2020 was undoubtedly SUVs. Among them, the large SUV lineups, Hyundai Palisade and Kia Telluride, showed particularly remarkable performance. From January to November last year, Palisade sold 74,538 units and Telluride sold 65,305 units, leading the U.S. sales.

The premiumization strategy, which helped shed the image of "affordable cars" and expanded the consumer base, was also positive. The proportion of U.S. buyers of Hyundai vehicles with an annual household income of over $100,000 rose from 33% in 2015 to 43% last year. Kia also saw an increase from 23% to 36% during the same period.

Additionally, Hyundai's aggressive marketing efforts, such as waiving up to six months of installment payments in case of job loss to encourage purchases, were effective. Unlike other global automakers whose factories repeatedly halted operations due to the COVID-19 pandemic, Hyundai and Kia's factories in Korea continued operating without major disruptions, allowing timely response to demand, which is analyzed to have played a significant role.

However, it remains uncertain whether this trend can continue this year as global competitors are expected to normalize supply. Hyundai Motor Group aims to maintain its upward momentum by focusing on SUVs and eco-friendly vehicles. A Hyundai Motor Group official stated, "This year, with the launch of the main new model Tucson, Tucson Hybrid, Santa Fe Hybrid, and the electric vehicle 'Ioniq 5' based on a dedicated platform, SUVs and eco-friendly vehicles will drive overall sales. The Genesis brand is also expected to see sales growth effects as sales of models like the G80 and GV80 ramp up."