21.2% Surge Compared to Same Period Last Year
Electric Vehicles Down 17.0%
"Simultaneous Targeting of Sales Volume and Profitability Amid Electric Vehicle Chasm"
Among the vehicles sold by Hyundai Motor Company and Kia in the first half of this year, the proportion of hybrid electric vehicles (HEVs) reached double digits for the first time on a half-year basis.
According to Hyundai Motor Company and Kia on the 4th, out of the 3,619,631 vehicles sold by the two companies in the first half of this year, HEVs accounted for 11.3% (408,799 units). This is the highest proportion and sales record for a half-year period.
During this period, the total sales volume of Hyundai Motor Company and Kia decreased by 1.0% compared to the same period last year, but HEV sales surged by 21.2% during the same period. This contrasts with electric vehicle sales, which decreased by 17.0% during the same period.
Like internal combustion engines, the popularity of sport utility vehicles (SUVs) was also a key factor for HEVs. In the first half of this year, Hyundai Motor Company's Tucson HEV sold about 85,000 units, more than double compared to the first half of last year. Sales of the Santa Fe HEV also surged by 80.0% to 45,100 units during the same period.
At Kia, the Sportage HEV sales increased by 14.0% to 67,600 units, and the Sorento HEV sales rose by 14.2% to 45,300 units.
This is evaluated as a result of actively targeting the market by promoting HEVs amid the "chasm" (temporary demand stagnation) in electric vehicles. Hyundai Motor Company and Kia are already selling 16 different HEV models. They have launched HEVs in most segments, including the Avante and Grandeur, as well as recreational vehicles (RVs). Recently, HEVs have also been introduced in minivan vehicles such as the Carnival and Staria. The luxury brand Genesis is also developing HEV models.
Hyundai Motor Group has also revealed plans to equip the Hyundai Motor Group Meta Plant (HMGMA) being built in Georgia, USA, with production facilities for not only electric vehicles but also HEV models.
Hyundai Motor Company and Kia stated, "For the time being, it is advantageous for securing sales volume and improving profitability in the market to maintain a flexible response system that focuses on the development and sales of HEV models in preparation for the slowdown in electric vehicle demand. In the long term, since the transition to electrification is essential, we will continue to introduce new electric vehicles and prepare to further strengthen our leading position in the electric vehicle market."
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