Hyundai Motor and Kia's April European Sales Quadruple Year-on-Year

Impact of COVID-19 Base Effect... Recovery Speed Accelerates Sharply

[Asia Economy Reporter Yu Je-hoon] Hyundai Motor Group showed a solid recovery in performance last month in the European region, with sales increasing more than fourfold compared to the previous year.

According to the European Automobile Manufacturers Association (ACEA) on the 20th, Hyundai Motor and Kia's sales in the European region last month totaled 78,495 units, a 317.3% increase compared to the previous year. This figure significantly surpasses the overall European market sales growth rate of 255.9% last month.

Hyundai Motor sold 36,087 units last month, a 295.3% increase compared to the previous year. This was driven by the strong performance of sport utility vehicle (SUV) models such as the Tucson (12,357 units) and Kona (8,693 units). Kia also sold 42,408 units, a 338.2% increase. Kia's growth was led by the Ceed (10,819 units) and SUV models including the Sportage (8,017 units) and Niro (7,009 units).

Sales of eco-friendly vehicles also surged. Kia Niro sold 7,009 units of eco-friendly models including hybrid electric vehicles (HEV) and electric vehicles (EV). The Kona and Tucson also sold 5,765 and 4,470 units respectively of eco-friendly models. In particular, EV sales for four models (Kona, Ioniq, Soul, Niro) increased by 285.0% year-on-year to 8,393 units.

As the sales growth rate exceeded the overall European market growth rate, market share also rose. Last month, Hyundai Motor and Kia's market share in Europe increased by 1.1 percentage points year-on-year to 7.5%. Hyundai Motor's share rose by 0.3 percentage points to 3.5%, while Kia's expanded by 0.8 percentage points to 4.1%.

As a result, Hyundai Motor and Kia's cumulative sales from January to April increased by 24.9% year-on-year to 300,529 units. The cumulative market share also rose by 0.1 percentage points to 7.3%. Considering that the European automotive industry demand increased by 23.1% year-on-year to 4,120,443 units, the sales growth rate slightly exceeded demand.

This dramatic recovery was largely influenced by the 'base effect' caused by COVID-19. In March and April last year, as COVID-19 spread rapidly in Europe, Hyundai Motor and Kia's sales in Europe in April dropped by about 80% to 18,808 units.

However, even considering this, Hyundai Motor's recovery pace is faster than that of competitors. According to ACEA, last month Hyundai Motor and Kia's sales growth rate (317.3%) was the second highest among the top five companies, following Stellantis (358.2%).

Nonetheless, sales have not yet fully recovered to pre-pandemic levels. According to industry sources, Hyundai Motor and Kia's sales in Europe in April 2019, before COVID-19, were about 91,000 units. A Hyundai Motor official stated, "The sales growth rate compared to market demand is high, so overall market share has also increased. Although sales have not yet returned to previous levels, it is encouraging that the recovery speed is faster than that of competitors."