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Hyundai and Kia are closing the gap with Tesla as US EV market share hits double-digits

Hyundai Motor Group, including Kia, is gaining ground on Tesla in the US electric vehicle market. After a record start to 2024, Hyundai and Kia accounted for 11.2% of the EVs sold in the US through May.

Hyundai and Kia have been on a roll with some of the most affordable, fuel-efficient electric cars in the US.

Hyundai has six of the top ten most fuel-efficient EVs on the market (by trim) in 2024, while Kia’s EV6 also made the list. Offering over 300 miles range, fast charging in under 20 mins, and an affordable price tag, the Korean automakers are making their presence known in the US.

According to data from the Korean Automobile & Mobility Association (via BusinessKorea), after selling 48,383 EVs in the US through May, Hyundai Motor accounted for 11.2% of the US market.

Hyundai Motor’s share has risen from 3.2% in 2020, 3.4% in 2021, 10.6% in 2022, and 6.8% last year.

With an 11.2% share, Hyundai and Kia are closing the (massive) gap with Tesla. While Tesla led by 52.9% over Hyundai last year, the gap has narrowed to 40.5% through May 2024.

Hyundai-Kia-Tesla
2024 Hyundai IONIQ 5 (Source: Hyundai)

Hyundai and Kia are closing in on Tesla

Despite other US automakers like Ford and GM pulling back on EV initiatives, Hyundai is not looking to slow down.

Although Tesla’s market share falling was inevitable, Hyundai and Kia outpacing rival automakers in the US shows the Korean automakers are doing something right.

Hyundai-Kia-Tesla
2024 Hyundai IONIQ 6 Limited (Source: Hyundai)

In an exclusive interview with Electrek, Hyundai America CEO Randy Parker told us the automaker is “humble and hungry” to separate itself from the competition. So far, it seems to be working.

Hyundai’s IONIQ 5 set a new monthly sales record in May, with 4,449 units sold. Through the first five months of the year, Hyundai has sold nearly 15,000 IONIQ 5 models.

After launching the EV9 last year, Kia has sold 7,766 electric SUVs through May, also a new record. With EV9 assembly kicking off at its West Point, GA plant last month, Kia expects it to gain access to the $7,500 tax credit, which should help drive demand.

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2024 Kia EV9 (Source: Kia)

Top comment by Leonard Bates

Liked by 16 people

We have a Kia Niro EV Wave edition that we are very fond of. Bought it very slightly used at the end of last year. Three years ago, this would have absolutely been a Model Y, but both my wife and I want nothing to do with Musk or contribute anyway to his hoard of cash. Kia makes a great product and Tesla has a wienie for a CEO. Marketshare gap is going to close.

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Hyundai is opening its first EV and battery plant in the US later this year. Once up and running, Hyundai will begin assembling the IONIQ 5, which it expects will also qualify for the tax credit.

In the meantime, Hyundai has been passing the incentives on through leasing. With incentives, Hyundai’s EVs are even cheaper than gas models.

Hyundai is promoting 2024 IONIQ 6 lease rates as low as $189 per month and $199 per month for the Kona Electric. Even the 2024 IONIQ 5 is featured at $229 per month. All include a $7,500 bonus cash offer.

Are you ready to see why Hyundai (and Kia) EVs are gaining on Tesla in the US? We can help you get started. You can use our links below to search for deals on Hyundai and Kia EVs at a dealer near you.

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Author

Avatar for Peter Johnson Peter Johnson

Peter Johnson is covering the auto industry’s step-by-step transformation to electric vehicles. He is an experienced investor, financial writer, and EV enthusiast. His enthusiasm for electric vehicles, primarily Tesla, is a significant reason he pursued a career in investments. If he isn’t telling you about his latest 10K findings, you can find him enjoying the outdoors or exercising

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