Despite Semiconductor Shortage... Hyundai Motor's November US Sales Hold Up (Comprehensive)

12% Decrease Compared to Last Year but Outperforms Competitors
Annual Record High Expected

[Asia Economy Reporter Changhwan Lee] As the supply shortage of automotive semiconductors continues, Hyundai Motor and Kia's sales in the United States in November decreased compared to the previous year.

However, their sales were relatively strong compared to other companies, and on an annual basis, they are still recording the highest performance ever, earning praise for holding their ground. Recently, the semiconductor situation has also improved, leading to expectations that sales will rise again next month.

Hyundai Motor announced on the 2nd that its U.S. sales last month, including Genesis, were 49,347 units, down 12% from the same period last year. During the same period, Kia sold 45,318 units, a 5.4% decrease. Combined, the two companies sold 94,665 units, a 9.0% decline.

The ongoing shortage of automotive semiconductors was a major cause of the sales decline. Randy Parker, Senior Vice President of Hyundai Motor's U.S. sales, explained, "Consumer demand for vehicles remains strong, but inventory issues caused by semiconductors persisted in November."

Strong Performance Compared to Other Companies... Outlook for Improvement

However, analysis suggests that Hyundai Motor's November sales performed well compared to other automakers.

Looking at the November U.S. results of other automakers compared to the previous year, General Motors (GM) saw a 35% decrease, Toyota 25%, Nissan 20%, and Honda 17%. On average, the overall decline was over 20%.

Even in terms of market share, Hyundai Motor and Kia stand out. Hyundai's U.S. market share in November was 4.9%, and Kia's was 4.5%, up 0.2 percentage points and 0.5 percentage points respectively from the previous year. The combined market share rose 0.7 percentage points year-on-year to 9.4%.

Hyundai's strong performance was led by improvements in Genesis and eco-friendly vehicle sales. Genesis, which surpassed 600,000 cumulative global sales last month, six years after the brand's launch, sold 5,002 units in the U.S. market last month alone, a 435% increase compared to the previous year.

Eco-friendly vehicles also saw sales increase by 165.4% year-on-year to 5,449 units. During the same period, Kia sold 3,034 eco-friendly vehicles, a 158.9% surge. The Niro Hybrid (HEV) and Sorento HEV led these sales.

Looking at the entire year, the improvement in performance is even more pronounced. Hyundai Motor and Kia's cumulative sales through November this year reached 1,384,273 units, 25.7% more than the previous year. Kia and Genesis have already surpassed their highest annual sales records by November alone.

There are also forecasts that the semiconductor supply shortage will improve starting in December. The Nihon Keizai Shimbun recently reported that the total inventory value held by five global automotive semiconductor manufacturers increased for the first time in nine months. In fact, Hyundai Motor's Ulsan plant is focusing on increasing production, recently expanding weekend overtime work.