Hyundai and Kia Surpass 12% U.S. Market Share for the First Time: "HEVs Will Drive Further Growth" [Click e-Stock]

August Market Share Hits 12.3%... Closing in on Third-Place Ford
Palisade and Telluride Lead SUV Sales
HEV Market Expansion Eases Pressure from End of EV Subsidies
"Next Growth Expected in the European Market"

Last month, Hyundai Motor Company and Kia saw their U.S. sales grow significantly faster than the overall market, pushing their combined market share above 12% for the first time ever. This achievement is seen as evidence that, despite the U.S. trend toward reshoring (bringing manufacturing facilities back to the home country), both local production and exports from Korea can be maintained.

On September 5, Daol Investment & Securities analyzed that now is the time to actively increase the weighting of Hyundai Motor Company and Kia in investment portfolios, citing this background.

Last month, the combined U.S. market share of Hyundai Motor Company and Kia reached 12.3%. General Motors (GM) remained in first place with 17.3%, followed by Toyota at 15.5% and Ford at 12.7%, placing Hyundai Motor Company and Kia in fourth. For a year, their combined average market share hovered in the 11% range, but it has finally surpassed 12%. This appears to be driven by a recent surge in sales of mid- to large-sized sport utility vehicles (SUVs), which has strengthened their market presence.

Notably, the gap with third-place Ford has narrowed, bringing Hyundai Motor Company and Kia within striking distance of the third spot. In fact, in August, Hyundai Motor Company and Kia's U.S. sales increased by 11.3% and 10.9%, respectively, far outpacing the overall market growth rate of 2.4% during the same period.

This trend was unique to Hyundai Motor Company and Kia. Four other major brands-Ford, Stellantis, Honda, and Nissan-saw their market shares decline. The key to strong sales in the large SUV segment is eco-friendly powertrains, but none of these four companies have implemented hybrid electric vehicle (HEV) systems in their SUVs, which has become a weakness.

Hyundai Motor Company The All New Palisade

In detail, Hyundai Motor Company sold 96,448 units and Kia sold 83,007 units, both setting all-time monthly sales records. In August, sales of the Hyundai Palisade and Kia Telluride reached approximately 15,000 and 12,000 units, respectively. Despite being the flagship models with the highest price points, they have started to surpass the sales of the lower-tier Santa Fe and Sorento. With the launch of the second-generation Palisade, Hyundai Motor Company's SUV lineup has improved, and the surge in demand has raised expectations for local production of the Palisade in the U.S.

This growth momentum is expected to expand to Europe in 2026. Analysts believe that, starting with their success in the U.S. market, Hyundai Motor Company and Kia have entered a cycle of quantitative growth as complete vehicle manufacturers. Yoo Jiwoong, a researcher at Daol Investment & Securities, explained, "This increase in market share demonstrates that Hyundai Motor Company and Kia can expand production in the U.S. while maintaining exports from Korea, even under the U.S. reshoring trend. Even after electric vehicle subsidies expire, growth in overall sales is possible through HEVs, and further expansion in the European market is also expected."