Automakers across the spectrum are grappling with a reduction in consumer demand regarding electric vehicles, even as EV sales steadily tick up.
While none are ignoring the transition to electrification, just about every legacy automaker is treading cautiously. Ford (F) -) and General Motors (GM) -) have both pulled back on EV investments and postponed the production of new EVs.
Toyota (TM) -), meanwhile, has touted the value of the hybrid as the bridge to mass-market electrification, and even Tesla (TSLA) -) has been forced to enact ever-increasing price cuts in an effort to entice disinterested consumers.
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That is the crux of the issue that seems to have created a bit of a gap in the EV adoption curve; even as global EV sales continue to increase, making up a historic portion of total car sales during the previous quarter, consumer interest — due to range anxiety and price — is steadily falling, according to data from S&P Global Mobility.
These elements — sales growth and fading consumer interest — are not mutually exclusive.
Hyundai (HYMTF) -) Chief Operating Officer José Muñoz, speaking to CNBC, indicated that Hyundai, like its peers, is seeing such a phenomenon.
"In our case, we continue to increase our sales of EVs dramatically," Munoz said, noting that Hyundai is experiencing "double sales" of its EVs every month, compared with the year earlier.
"It is true that we don't see the industry growing as fast as we thought it would be," he added. "The demand is not as high as expected."
Muñoz noted that Hyundai is also seeing "fantastic growth" in the sales of its hybrids, indicating that the mass market is not yet ready for full electrification.
Related: Toyota is making a big new move to give its electric vehicle sector a boost
Hyundai and Amazon set a partnership
Muñoz's comments came in the wake of a new partnership, announced Nov. 16 at the 2023 Los Angeles Auto Show, between the carmaker and e-retailing giant Amazon (AMZN) -). The partnership is designed to boost the Seoul car company's consumer visibility and accessibility.
Beginning in 2024, consumers will be able to purchase Hyundai vehicles in the U.S. through Amazon. Amazon's cloud division, Amazon Web Services, has likewise become Hyundai's preferred cloud provider, working to build the Alexa voice-controlled virtual assistant, into Hyundai's next-generation vehicles.
The partnership is the first step in Amazon's broader approach to bring cars to its online retail stores. The Seattle company said in a statement that beginning in 2024 car dealers for the first time will be able to sell vehicles through Amazon's U.S. stores. Hyundai, Amazon said, will be the first brand available for purchase.
The company did not indicate which other brands will be available, or when.
“Amazon is the ideal partner to help realize our vision of progress for humanity, including improving how people and goods move more efficiently and sustainably," Hyundai Chief Executive Jaehoon Chang said in a statement.
Hyundai's global depositary receipts, up around 36% for the year, closed Thursday at $41.10.
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