Hyundai and Kia Set Record Sales for Six Consecutive Months
U.S. to Impose 25% Tariff on Imported Cars Starting in April
Hyundai Motor Company and Kia continue their rapid growth by setting the highest-ever first-quarter records in the U.S. market. They have also set new records for the same month for six consecutive months. However, uncertainty is growing over whether this steep growth trend can continue as the U.S. government prepares to impose a 25% tariff on imported cars.
On the 2nd, Hyundai announced that it sold 203,554 vehicles in the U.S. in the first quarter, a 10% increase compared to the same period last year. Sales of eco-friendly vehicles increased by 38% year-on-year, thanks in particular to a 68% surge in hybrid sales.
Monthly sales for March reached 87,019 units, a 13% increase from the previous year. This is the highest March sales figure and the second-highest monthly figure ever recorded. By model, sales increased for Tucson (28%), Elantra (25%), Santa Fe (25%), Palisade (20%), and Ioniq (17%).
Kia also recorded its highest-ever first-quarter sales by selling 198,850 units, a 10.7% increase compared to the same period last year, and set new records for the same month for six consecutive months. Monthly sales for March rose by more than 13% to 78,540 units. The compact sedan K4 led the performance with over 37,000 units sold, while key sport utility vehicles (SUVs) such as Carnival (53%), Telluride (17%), and Sportage (11%) showed steady growth.
However, it is uncertain how long this rapid growth trend will continue. If the Trump administration imposes a 25% tariff on imported cars starting from the 3rd of this month, the price of imported vehicles could increase by as much as $10,000 (approximately 15 million KRW).
The current price of the Hyundai Elantra (Avante) sold in the U.S. starts at $22,125 (32.58 million KRW), but with the tariff added, the price would exceed 40 million KRW. Randy Parker, CEO of Hyundai Motor North America, recently hinted at the possibility of price increases in a letter to dealers, stating, "Current vehicle prices are not guaranteed and may change for products wholesaled after April 2."
Hyundai and Kia have pledged to respond by increasing production capacity at Hyundai Motor Group Meta Plant America (HMGMA), completed in Georgia, U.S., but it seems difficult to quickly increase the number of locally produced models. Currently, HMGMA produces only two electric vehicle models: the Ioniq 5 and Ioniq 9.
Last year, Hyundai and Kia sold about 1.7 million vehicles in the U.S. Of these, approximately 1.01 million units were produced in Korea and exported. Hyundai exported 630,000 units, and Kia exported 370,000 units.
The remaining 700,000 units are produced at Hyundai’s Alabama plant and Kia’s Georgia plant. Even if the newly opened HMGMA increases its operating rate to produce up to 500,000 units, the total local production capacity in the U.S. would be around 1.2 million units. Moreover, relocating the main export models from domestic plants overseas would require significant additional costs and would likely face opposition from labor unions.
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