Hyundai Motor and Kia are set to break their combined sales record in the United States this year, riding high on the success of luxury and eco-friendly vehicles. The Korean automakers witnessed a remarkable 12.1% sales growth in 2023 compared to the previous year, establishing the U.S. as a crucial market.
As demand for eco-friendly options rises, the companies anticipate further sales growth, especially in the electric vehicle (E.V.) sector. Sales of sports utility vehicles have also contributed to their positive performance. In 2023, Hyundai and Kia experienced an impressive 52.3% sales growth in the eco-friendly vehicle sector, including E.V.s, constituting 16.8% of total sales—a fivefold increase from three years ago.
These automakers have become significant players in the U.S. market for environmentally friendly vehicles, surpassing 20% market share consecutively since 2021, doubling their global market share of about ten per cent.
Genesis, Hyundai’s luxury brand, has been gaining traction in the U.S. The Genesis, introduced in 2015, has seen cumulative sales exceeding 250,000, and projections suggest it will reach the milestone of 300,000 by the end of the third quarter this year. The success in the U.S. market underscores the growing appeal of Hyundai and Kia, signalling a promising trajectory for their sales and influence in the automotive industry.
Hertz Is Dropping Electric Cars from Its Fleet
Rent-a-car firm Hertz Global Holdings is selling off about 20,000 electric vehicles, including Tesla, from its fleet in the U.S. two years after adding E.V.s to its range. This is a sign that demand for electric vehicles is declining.
The company said Hertz would instead opt for gas-powered vehicles, citing higher costs related to collisions and damage to electric vehicles, even though it aimed to have 25 per cent of its fleet be electric by the end of 2024.
Hertz limited the torque and speed of its electric cars and offered them to experienced drivers to make it easier to adjust after some customers had head-on crashes, said the company’s chief executive, Stephen Scherr.
