hybrid

May 26 (Asia Today) — Hyundai Motor Company and Kia are accelerating efforts to secure the No. 2 position in the U.S. hybrid vehicle market as demand for gasoline-electric models continues to rise.

The South Korean automakers are expanding local hybrid production in the United States to reduce tariff costs and increase utilization at Hyundai Motor Group Metaplant America, or HMGMA, in Georgia.

The U.S. auto market has seen growing consumer demand for hybrids since the expiration of federal electric vehicle tax credits in September 2025.

Hybrid vehicle penetration in the United States rose from 10.1% in 2024 to 13.7% in the first quarter of this year, while electric vehicle penetration fell from 7.9% to 5.6%, according to industry data.

Data from Kiwoom Securities and EV-Volumes showed Hyundai Motor’s share of the U.S. hybrid market reached 10.9% in the January-March period, up from 8.0% in 2024.

Kia’s share rose to 7.9% from 4.2% two years earlier.

Combined hybrid sales by the two companies totaled 97,627 vehicles in the first quarter, a 53.2% increase from a year earlier.

Industry analysts said demand for hybrids could continue to grow in the second half of the year if high fuel prices persist.

Unlike the increasingly crowded electric vehicle market, where companies including Tesla, Toyota Motor Corporation, General Motors, Rivian and Ford Motor Company compete aggressively, the hybrid segment remains dominated by Toyota, Honda Motor Co. and Hyundai Motor Group, which together account for about 85% of sales.

Hyundai Motor Group plans to further increase U.S. production of hybrid models.

Kia is expected to begin producing the Sportage hybrid at HMGMA later this year, while Hyundai Motor is expected to manufacture the Palisade hybrid and Tucson hybrid at the plant beginning next year.

The strategy is aimed at reducing tariff burdens estimated at about 15% while boosting production efficiency at the Georgia facility.

Analysts said the compact SUV segment will be a key battleground.

Honda’s CR-V led the segment in the United States with about 56,000 units sold in the first quarter, followed by Toyota’s RAV4 with about 37,000 units. Hyundai Tucson and Kia Sportage each sold about 17,000 units during the period.

“The current CR-V model was introduced in 2023 and is beginning to age,” Kiwoom Securities analyst Shin Yoon-cheol said. “Hyundai Motor Group’s new hybrid product cycle could create pressure for Honda.”

Shin added that if Hyundai and Kia capture 10% of CR-V hybrid sales in the United States, the companies’ combined market share could improve by 0.1 percentage points.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260526010007582

May 4 (Asia Today) — Hyundai Motor and Kia accelerated their shift toward electrified vehicles in the United States in April, even as overall sales fell slightly.

Hyundai Motor Group said Monday it sold 159,216 vehicles in the U.S. market in April, down 2.1% from a year earlier. Hyundai Motor sold 86,513 vehicles, down 1.5%, while Kia sold 72,703, down 2.8%. Genesis sales rose 0.8% to 6,356 vehicles.

The decline was attributed to a high base effect from advance purchases last year linked to tariff concerns. Major global automakers also reported weaker sales, while Hyundai Motor Group maintained its No. 2 position in the market.

Eco-friendly vehicle sales showed clear growth despite the overall decline. Hyundai and Kia sold 48,425 eco-friendly vehicles in April, up 47.6% from a year earlier. Their share of total sales exceeded 30% for the first time, reaching 30.4%.

Hybrid sales surged 57.8% to a record 41,239 vehicles. Hyundai sold 21,713 hybrids, up 47.7%, while Kia sold 19,526, up 70%.

Electric vehicle sales also rose 7.7% to 7,186. Hyundai EV sales edged lower to 4,779, but Kia’s EV sales jumped 65% to 2,407, driving growth in the segment.

By model, the Hyundai Tucson led sales with 22,024 vehicles, followed by the Elantra with 14,778 and the Palisade with 11,324. Sonata sales rose 18.2% to 7,105, while Elantra sales climbed 12.6%, showing signs of recovery in sedan demand.

Among hybrid models, Sonata hybrid sales surged 170% to 4,520 and Elantra hybrid sales rose 55.3% to 2,399, reflecting stronger demand for electrified models.

For Kia, the Sportage remained the top seller with 15,803 vehicles, followed by the K4 with 13,214 and the Telluride with 12,577. Seltos sales rose 31.7% to 5,335, absorbing demand in the compact SUV segment.

Among Kia’s eco-friendly vehicles, the Sportage hybrid rose 65.2% to 7,446 and EV9 sales jumped 481.5% to 1,349.

Genesis maintained its position in the premium market, led by GV70 sales of 2,837, up 7.7%, and G70 sales of 991, up 23.4%.

Hyundai and Kia said their balanced portfolio of hybrids, electric vehicles and internal combustion engine models is helping them respond flexibly to changing market conditions.

— Reported by Asia Today; translated by UPI

© Asia Today. Unauthorized reproduction or redistribution prohibited.

Original Korean report: https://www.asiatoday.co.kr/kn/view.php?key=20260504010000367