
Hyundai Motor Group ranked second in electric vehicle sales in the US last year, following the No.1 EV maker Tesla, with plans to boost local production amid the inauguration of Donald Trump.
According to data from the Korea Automobile & Mobility Association, Hyundai Motor Company and its smaller sibling Kia sold approximately 123,000 battery-powered vehicles in the US in 2024, achieving a 10 percent market share. Although there remains a significant sales gap with Tesla, which sold 591,400 units, Hyundai has maintained its position as the second-largest EV brand after Tesla for two consecutive years.
US automakers General Motors and Ford Motor Company took third and fourth place, selling 114,432 and 97,865 units, respectively. German luxury automaker BMW ranked fifth with 51,723 units sold.
Notably, Hyundai Motor’s flagship electrified SUV, the Ioniq 5, saw a 30.9 percent surge in sales volume in the US last year, reaching 44,400 units, following the Tesla Model Y and Model 3, and the Ford Mustang Mach-E. The Ioniq 5 is the first of the Hyundai Motor and Kia EV fleet to surpass cumulative sales of 100,000 units in one of the largest car markets.
Upon its launch in December 2021, the Ioniq 5 grappled with sales setbacks due to the US Inflation Reduction Act, which limited EV subsidies of up to $7,500 to locally made vehicles. At the time, the model was produced in South Korea and exported to the US. In the second half of 2022, shortly after the IRA took effect, local sales of the Ioniq 5 dropped to around 1,000 units per month. However, Hyundai Motor’s flagship EV recovered its growth momentum after the US Treasury allowed tax credits for “qualified commercial clean vehicles” in the same year, regardless of their origin.
Starting 2025, the Ioniq 5 will be produced at the company’s newly built production base in Georgia, making it eligible for IRA tax credits. The Hyundai Ioniq 9, Genesis GV70, and Kia EV6 and EV9 have also qualified for these credits for the first time.
Kia's bestselling electric model in 2024 was the three-row, battery-powered EV9 SUV with 22,017 units sold. Leveraging the Kia EV9’s success, Hyundai Motor’s upcoming Ioniq 9 is expected to ride the sales boom this year, sources said.
Addressing the concerns of Trump’s pledge to scrap the IRA tax credit and his proposed universal tariffs of 10-20 percent, Hyundai Motor Group plans to strengthen ties with the incoming administration as well as accelerate local production.
The company recently decided to donate $1 million through its US subsidiary, Hyundai Motor America, to the President-elect’s inauguration event slated for Jan. 20. In addition, its Georgia plant seeks to increase its local production ratio to 70 percent, led by the five car models receiving EV subsidies. The facility will also expand its annual production capacity from 300,000 to 500,000 units.
Hyundai Motor Company CEO Jose Munoz, who began his term as the carmaker’s first foreign national CEO, recently stated in an interview with Bloomberg, “Localizing production is the simplest and most effective way to respond to (US) policy changes.”
By Byun Hye-jin (hyejin2@heraldcorp.com)