As 2023 progresses, Hyundai and Kia appear to be maintaining their momentum thus far. As China imposes new tariffs on foreign electric vehicles (EVs), South Korean automakers Hyundai and Kia aim to capitalize on the shift by strengthening their competitive position in the market. As South Korean automakers introduce competitively priced electric vehicles (EVs) to major global markets, including the US, they’re generating a significant tailwind in the industry.
Hyundai Motor, in partnership with Kia, reported combined earnings of approximately $9 billion (KRW 12.27 trillion) for the previous year.
Strong demand dynamics in the United States, Europe, and India drove growth. In the United States, Hyundai broke its all-time record of gross sales for the third consecutive year. In a notable move, Hyundai’s purchase of over 800,000 vehicles accounted for more than 10% of the US auto market.
The majority of the company’s growth can be attributed to surging demand for its cutting-edge electric vehicles. In a significant boost, Hyundai sold nearly 34,000 IONIQ 5 models in the US last year, representing a 48% year-over-year increase. According to recent data, the Hyundai IONIQ 5 ranked as the sixth highest-selling electric vehicle (EV) in the United States last year, surpassing the Rivian R1S and Ford F-150 Lightning in terms of sales performance within the market.
Hyundai reported a significant surge in demand for its IONIQ 5 model, with almost 15,000 units sold within the first five months of 2024, representing a year-over-year increase of 43%. The electric crossover’s popularity has been remarkable, as it set a new monthly sales record in May.
Despite their rivals’ scaled-back electric vehicle (EV) ambitions, Hyundai and Kia remain committed to bridging the gap with Tesla.
“For the time being, electric vehicles hold top priority,” Hyundai Motor Group CEO Chang Jae-hoon said recently.
A comparison of the Hyundai IONIQ 5 (left) and IONIQ 6 at a Tesla Supercharger, courtesy of Hyundai.
Gaining floor within the US
As part of a significant expansion, Hyundai is set to build its first electric vehicle (EV) and battery plant in the United States. South Korea’s Hyundai Motor Group is poised to launch its $7.6 billion Metaplant America facility in Georgia, with operations expected to be fully operational by year’s end.
Randy Parker, Hyundai’s North American CEO, shares this perspective. In a recent interview, Parker revealed that Hyundai’s approach to electrification is characterized by “humble and hungry” ambition, seeking to differentiate itself from other EV manufacturers.
Hyundai and Kia, two industry leaders, already boast a range of competitively priced and fuel-efficient electric vehicles (EVs) on the market, including the Hyundai IONIQ 5, Hyundai IONIQ 6, and Kia EV6.
According to the U.S. Department of Energy, Hyundai boasts an impressive six models among the top ten most fuel-efficient electric vehicles in the country for this year.
Parker announced that Hyundai is empowering customers with the confidence to opt for electric vehicles by offering long-range, fast-charging models at an affordable price point.
As soon as Hyundai’s electric vehicle production facility in Georgia is up and running, the company anticipates a sustained surge in momentum. Hyundai’s electric vehicles manufactured at its facilities are expected to meet the requirements for the $7,500 federal EV tax credit, poised to accelerate demand in 2025.
The Hyundai Motor Group is poised to usher in a new era as the 2025 IONIQ 5, its latest electric vehicle, becomes the first production model to emerge from its revamped manufacturing facility.
South Korean automotive giants Hyundai and Kia are set to revolutionize the electric vehicle (EV) market with the introduction of affordably priced, eco-friendly models.
Although Hyundai and Kia have already introduced several affordable electric vehicles to the market, even more budget-friendly options are on the horizon.
Korea saw the launch of Kia’s EV3 earlier this month, with orders opening at a starting price of $30,700, or KRW 42.08 million. The Kia EV3 is a key component of the company’s affordable electric vehicle lineup, with prices ranging from $30,000 to $50,000.
The EV3 is expected to debut in the US market with an initial price range of $30,000 to $35,000, making it one of the most affordable electric vehicle options, excluding the Nissan LEAF ($27,956), Nissan Ariya ($35,556), and Hyundai IONIQ 6 ($36,506).
Kia is set to launch its eagerly anticipated EV4 model next year, a compact electric sedan designed for mass-market appeal, as glimpsed in recent public test drive sightings. The estimated starting price for the EV4 is expected to be around $35,000.
As Hyundai teases its upcoming low-cost electric vehicle, the Casper Electric, ahead of its highly anticipated launch later this week.
The Korean-manufactured Casper gasoline-powered vehicle serves as a foundation for the Casper Electric, its electric counterpart. In Europe, the Casser will probably be referred to as the Inster EV. The electric vehicle’s driving range is expected to fluctuate between 315 km (196 miles) in South Korea and 355 km (221 miles) according to the Worldwide Harmonized Light Vehicle Test Procedure.
Hyundai’s Casper Electric Teaser Picture Released
Hyundai’s new electric vehicle is expected to debut at a starting price of under $27,000 (approximately €25,000) in the European market. Despite this, Hyundai remains mum on whether its latest electric vehicle will debut in the US market.
As newly imposed tariffs on Chinese electric vehicles (EVs) take hold in the US and Europe, Hyundai and Kia are poised to gain significant traction through 2025.
As Hyundai awaits the opening of its Georgia-based manufacturing facility, the company has introduced a new $7,500 incentive program for electric vehicle customers this month. All 2024 Hyundai electric vehicles (EVs) qualify for a federal incentive of up to $7,500.
