Hyundai overtakes Stellantis to become No. 4 in U.S.

Industry

Published: 12 Jan. 2024, 11:33 Updated: 15 Jan. 2024, 14:22

Hyundai overtakes Stellantis to become No. 4 in U.S.

Hyundai Motor Group Executive Chair Euisun Chung delivers a New Year's message at Kia's AutoLand in Gwangmyeong, Gyeonggi, in early January. [HYUNDAI MOTOR]

LOS ANGELES — Hyundai Motor and Kia, Korea's two largest carmakers, sold a record number of vehicles in the United States last year, making them the fourth-largest car-making group in the country, beating Stellantis and Honda.

Hyundai Motor Group said Thursday the carmakers sold a record 1.65 million cars in the U.S. market last year, up 12.1 percent on year. It's the first time their combined sales exceeded 1.5 million level.

Hyundai sold an all-time high of 873,370 units during the period, while Kia sold 782,451 cars, also a record high.

Hyundai Motor's Ioniq 5 all-electric model. [HYUNDAI MOTOR]

This makes Hyundai Motor Group the fourth largest automaker, beating Stellantis for the first time in its history, two years after it beat Honda to take the No. 5 spot.

General Motors was the No. 1 brand, selling 2.6 million units in the U.S. market, followed by Toyota, which sold 2.3 million and Ford's 1.98 million.

"It proves that Hyundai and Kia have successfully positioned themselves in the U.S. market as one of the most trustworthy brands with high marketability and brand awareness," the Korean auto group said.

A Hyundai Motor employee works at its manufacturing plant in Montgomery, Alabama [HYUNDAI MOTOR]

Genesis and EVs the biggest contributors
Hyundai attributed the increased sales of high-margin Genesis cars and eco-friendly vehicles to the improved performances.

Genesis, the standalone luxury brand under Hyundai, sold 69,175 units in the U.S. market last year, a record high and a 20 percent year-on-year increase.

Genesis will introduce the latest GV80 coupe and revamped GV80 shortly.

The two automakers sold a total of 278,122 eco-friendly vehicles, which include pure EVs and hybrids, up 52.3 percent on year. The sales jumped 2.7 times compared to two years ago.

Eco-friendly vehicles accounted for 16.8 percent of all vehicles they sold in the U.S. in 2023, a five-fold increase from 2020. The two hold over 20 percent of the U.S. clean auto market.

Hyundai's Ioniq 5 was the biggest contributor. Its sales rose 47.6 percent on year in 2023. Kia's EV6 was the second most popular model, selling 18,879 units.

EV9, Kia's first three-row EV, exceeded the 1,000 mark in monthly sales for the first time in December.

Genesis GV80 Coupe [HYUNDAI MOTOR]

Rosy 2024 with anticipated tax credits

Hyundai and Kia see a rosy 2024 as their cars may be eligible for the Inflation Reduction Act (IRA) tax credits this year.

Kia will start producing EV9s at its plant in Georgia in the second quarter. Hyundai will also start producing some of its EVs at the Alabama plant, though the models have yet to be confirmed.

Hyundai will also start operating its first EV-dedicated factory in Georgia at the end of the year. The company initially set the schedule for 2025 but advanced it to qualify for the tax credits.

Under the IRA, the U.S. government offers up to $7,500 tax credits to vehicles that are assembled in plants in North America. Hyundai and Kia cars were excluded from the list unveiled in early January as they are yet to have EV plants in the North American region.

"The 1.5 million yearly sales is a big achievement just for the numbers, but also very meaningful that Hyundai and Kia have become the 'preferable brands' for U.S. customers."