- Hyundai Motor Group has been making a big push into the EV world, with affordable, high-quality options in most major segments.
- That's paying off: The group surpassed Ford and GM in EV sales, becoming second only to Tesla in the U.S.
- Later this year, Hyundai will start producing EVs in the U.S., which may give its EV lineup more access to federal tax incentives and increase sales.
Once again, Hyundai Motor Group's huge EV push is paying off.
In the first six months of this year, the Korean conglomerate's three brands—Hyundai, Kia and Genesis—accounted for 10% of all U.S. EV sales, putting the group far ahead of Ford and General Motors in EV market share. It's now behind only Tesla, according to data from Motor Intelligence reported by Automotive News.
HMG has continued to press its EV advantage, launching more affordable and desirable EVs as its competitors roll back their plans. Vehicles like the Kia EV9 and Hyundai Ioniq 5 N have few (if any) direct competitors yet, and Hyundai's taking advantage of being the only game in town.
The group's 10% market share puts it far ahead of Ford (7.4%) and General Motors (6.3%) in EV volume. It's worth noting that on a single brand-by-brand basis, however, Ford is ahead of Hyundai and Kia in EV sales. It's only as an overall automotive group that HMG finishes second behind Tesla and outpaces the other Americans.
And in the coming months and years, more of those HMG EVs will be made in America as well. U.S. production of the Ioniq 5 starts in Georgia later this year and the EV9 is already there too.
Regardless of whether you look at brands or groups, though, the no. 1 spot is indisputable. Tesla reigns. The company made up over 50% of all EV sales in the U.S. for the past ten years. But that streak ended this April when Tesla's share of the EV market dipped to around 46%. Still, Hyundai Motor Group has a long way to go. With the no. 2 contender having just 10% of the market, you can see how fractured the rest of the EV industry is.
You also can't count out the competition. While the Kia EV9 launch boosted sales and the Hyundai Ioniq 5 and Kia EV6 remain strong volume-drivers, competition is getting more stiff. Though GM's EV sales are up this year, it got a slower-than-expected start thanks to the Ultium platform's teething issues. Cars like the Blazer EV and Equinox EV are just starting to do real numbers, three years after Hyundai hit the market with its affordable EV crossovers. Ford, too, has a "Skunkworks" EV in progress that promises to be more affordable and better suited to the EV market.
Ford, GM and Hyundai have also had to put generous incentives on their EVs to keep customers interested. When HMG's Korean-built EVs lost eligibility for the federal tax credit for EV purchases, Hyundai and Kia offered $7,500 incentives on many models to keep them competitive. The Ioniq 6, for instance, is offering $7,500 off right now. They've had plenty of tantalizing lease offers, too. I can't imagine Hyundai—or GM or Ford, for that matter—is making much money on these deals.
For Hyundai, though, it seems to be worth it. The company has long struggled to lure buyers away from established favorites like Toyota, Honda and Ford, and is using its more compelling EV portfolio to establish an early market lead in the fastest-growing part of the car market.
HMG's betting that if it can get more people in its extremely competitive EVs, those buyers will become loyal Hyundai, Kia and Genesis customers. It remains to be seen whether their customers will stay loyal. But if step one of HMG's plan is getting a strong foothold in the American EV landscape, consider that accomplished.
Contact the author: Mack.hogan@insideevs.com
