Big Three Coming
In the U.S., the world's largest electric vehicle market, Hyundai and Kia have successfully made it into the top 10 manufacturers by sales volume for the first half of this year (January-June), but they face intense competition from traditional German powerhouses, namely BMW, Mercedes-Benz, and Volkswagen.
According to the Korea Automobile Manufacturers Association (KAMA) on July 25, a total of 655,699 electric vehicles (EVs, PHEVs, FCEVs) were sold in the U.S. in the first half of this year, an increase of 54.8% compared to the same period last year. Of these, Hyundai and Kia sold 26,578 and 22,248 electric vehicles, respectively. Compared to the first half of last year, Hyundai saw an increase of 6,359 units while Kia saw a decrease of 3,766 units. In terms of market share, Hyundai held 4.1% and Kia 3.1%.
In the manufacturer-by-sales-volume ranking, while Hyundai stood at 5th place and Kia at 10th, the growth rates of BMW (6th), Mercedes-Benz (7th), and Volkswagen (11th) were noteworthy. Firstly, BMW sold 23,740 vehicles in the first half of this year, a 62.9% increase compared to last year. Following them, Mercedes-Benz sold 23,071 electric vehicles in the same period, a staggering 469.7% increase year-on-year, and Volkswagen also achieved growth of 272.5% by selling a total of 16,448 vehicles in the first half of the year.
BMW, Mercedes-Benz, and Volkswagen all outpaced the growth rates of Hyundai (31.5%) and Kia (-15.7%) and pursued them closely in total sales volume. The factors that allowed these German "Big Three" companies to grow rapidly in the U.S. market include the expansion of new lineups and a response to the IRA through local production.
On the other hand, the Hyundai Motor Group, with an overall growth rate of only 5.9%, does not yet have a dedicated EV factory in the U.S. By as early as the second half of 2024, they plan to operate their Metaplant America factory in Georgia and produce Hyundai’s IONIQ and Kia’s EV series. In other words, they will need to survive the North American market for at least the next year or so without access to personal purchase subsidies.