As rivals including Ford and GM pull back, Hyundai is surging ahead in the US electric vehicle market. Hyundai’s US CEO, Randy Parker, is calling out the competition as the brand goes “all in” on EVs.
Hyundai goes “all in” on EVs as rivals pull back
“Why would anybody want to purchase an EV from an [automaker like Toyota or GM] who’s lobbying against EVs?” Parker told The Electric.
After selling nearly 40,000 EVs in the US last year, Hyundai Motor Group (including Kia and Genesis) surpassed Ford and General Motors to become the second-best-selling EV brand behind only Tesla.
Meanwhile, American automakers and several others are pulling back on EV plans, citing “slower than expected demand.” Not for Hyundai, however.
“If a person is thinking about buying an EV, I think you want to go to a company who is fully committed to selling EVs in the United States,” Parker explained. These are bold words as the company doubles down on electric cars.
While rivals are delaying EV launches and cutting billions from electric vehicle spending, Hyundai’s US boss says the company is still “all in” on EVs.
Hyundai offers three of the most affordable electric cars in the US: the IONIQ 5, IONIQ 6, and Kona Electric. The IONIQ 5 was the sixth best-selling EV in the US last year, with nearly 34,000 models sold. It also just set a new March sales record, pushing EV sales up 100% last month.
Beating out the competition
The upgraded 2024 Hyundai Kona is better in every way, with more range, faster charging, and a sleek new design. It’s also one of the cheapest EVs you can buy, starting under $33,000.
As one of the cheapest cars to lease in the US (gas or EV), Hyundai’s IONIQ 6 is seeing higher demand. US IONIQ 6 sales are up 794% through the first three months of 2024.
A recent study from Boston Consulting Group found that Hyundai’s IONIQ 6 was the only EV that met potential buyers’ range, charging, and price targets. Tesla’s Model 3 was the next closest.
Hyundai looks to accelerate its momentum after fast-tracking construction at its first EV and battery plant in the US. The state of Georgia dedicated February 26, 2024, to the automaker, calling it “Hyundai Day,” as the automaker invests billions while creating thousands of jobs.
Although initial plans called for production to begin next year, Hyundai now expects to begin building EVs in the fourth quarter to qualify for the $7,500 federal tax credit.
Hyundai is investing nearly $7.6 billion, directly creating 8,500 jobs. Its $5 billion battery plant with SK will establish another 3,500 positions. And that’s not including the suppliers the company has brought along with it.
According to the Center for Automotive Research, Hyundai’s investments totaled over $12.6 billion while creating 50,000 new jobs in the area.
Electrek’s Take
Hyundai is already gaining market share in the US after topping Ford and GM in EV sales last year (with Kia and Genesis).
With its vehicles expected to qualify for the $7,500 tax credit, the automaker looks to take advantage of rivals pulling back.
While Ford and GM work to lower EV costs with new battery tech, Hyundai is already offering affordable electric cars on its E-GMP platform. Hyundai is expected to reveal its first three-row electric SUV, the IONIQ 9, later this year as it expands into new segments.
Meanwhile, Ford announced it’s delaying the launch of its three-row electric SUV as it waits for the market to develop.
This could create another opportunity for Hyundai to steal market share in the US. In fact, three-row electric SUVs are already in demand. Rivian’s R1S was the seventh best-selling EV last year, behind the IONIQ 5.
After kicking off sales late last year, Kia has sold over 4,000 units of its three-row EV9 electric SUV.
Top comment by Paul Mendes
I just recently (less than 2 months ago) bought a new Ioniq 6 Limited, and I am very impressed with the car. It has an enormous interior, excellent fit and finish, very good tech and a great value (I got $7,500 off the price, which all Hyundai EV's get, plus an additional $3,500 off from the dealership). I also have a Tesla Model 3, which I'll admit has better tech and software than the Hyundai. But the Ioniq does a lot of things much better than the Tesla.
Hyundai is taking advantage of arguably the auto industry’s most significant transition while staying laser-focused on the future. The company aims to be one of the top three EV makers globally by 2030. By doubling down and going “all in” on EVs, Hyundai is positioning itself to outpace the competition.
Hyundai Motor is now the fourth largest automaker in the US, behind GM, Ford, and Toyota, with EV sales surging.
Do you think Hyundai can be one of the top three EV producers by 2030? Let us know in the comments.
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