Hyundai Motor and Kia Set New Record for US Sales in First Half of Year...Eco-Friendly Cars at 16%

Despite Exclusion from US IRA Subsidies, Electric Vehicle Sales Are Zooming

Hyundai Motor Company and Kia set a new record for sales in the U.S. market in the first half of this year. Despite the exclusion from electric vehicle subsidies following the finalization of the U.S. Inflation Reduction Act (IRA) detailed guidelines in April, Hyundai and Kia continued to achieve the highest-ever sales of eco-friendly vehicles for the first half of the year.

On the 4th, Hyundai and Kia announced that they sold 820,180 units in the U.S. market in the first half of this year, a 16.7% increase compared to the previous year. Hyundai Motor Company (including Genesis) recorded sales of 425,847 units, up 15.2%, while Kia achieved sales of 394,333 units, up 18.3%.

Hyundai and Kia surpassed 800,000 units in just the first half of this year, breaking the all-time sales record for the first time in two years since 2021. This was largely due to the recognition of the product competitiveness of not only electric vehicles such as the Kona EV and Ioniq 6 but also hybrid sport utility vehicles (SUVs) like the Sportage and Tucson.

Hyundai and Kia’s eco-friendly vehicle sales in the first half of this year reached 133,171 units, marking the highest figure ever recorded for a half-year period. Approximately 16% of total sales were eco-friendly vehicles. Electric vehicle sales reached 38,457 units, and hybrid sales totaled 94,609 units.

In April, the U.S. government announced detailed guidelines for the IRA, specifying the electric vehicle models eligible for subsidies. Since the vehicles had to be assembled in North America and meet detailed conditions regarding battery components and critical minerals, Hyundai and Kia electric vehicles produced domestically in Korea were excluded from subsidy eligibility.

In response, Hyundai and Kia actively increased the proportion of fleet (corporate, rental, and used cars) and lease sales that qualify for subsidies. Until the Hyundai Motor Group Meta Plant America, the dedicated electric vehicle factory in the U.S., begins full-scale operation in the second half of 2024, they plan to fill the subsidy gap by expanding fleet and lease programs and other various channels.

Hyundai Electric Vehicle Ioniq 6

Accordingly, Hyundai and Kia’s eco-friendly vehicle sales in June are also progressing smoothly. In June, Hyundai and Kia sold 25,913 units in the U.S., a 55% increase compared to the previous year. The share of eco-friendly vehicles in total monthly sales also rose to 17.8%.

In particular, Hyundai’s electric vehicle sales in June reached 6,285 units, marking the highest monthly figure ever. The share of eco-friendly vehicles in total sales exceeded 20% for the first time. This was thanks to increased sales of major electric vehicle models such as the Ioniq 5, Ioniq 6, and Kona EV.