Against the background of shockingly strong demand for electric vehicles (EVs) in recent times, Korean carmakers have seen buoyant exports.
Hyundai and
Kia – a duo that seems to go from strength to strength – have announced they
both enjoyed record-high export performances this year.
Hyundai
says its EV sales have gone up by 29 per cent, while it has also established
new overseas markets in areas like Indonesia and Vietnam.
Meanwhile Kia has reported an impressive 31 per cent hike in its pure electric vehicle numbers making their way out of South Korea, which is obviously fantastic news in what is clearly becoming an increasingly important sector.
Kia and Hyundai Both Win “Top of Export” Award!
After a
record-setting year, Hyundai and Kia both won the "Top of Export"
award from Seoul's Trade Ministry.
Hyundai
ranked first with $31 billion in exports, up 29.6% from the previous year. Kia
came in second with $23.5 billion in exports, a 30.7% increase from the
previous year.
The growth
comes despite challenges including rising interest rates; supply chain
shortages; and protectionism - which makes it more difficult for foreign
companies to sell goods to American customers.
Hyundai credits its success to competitive electric vehicles, improved sales outside South Korea as well as global expansion efforts.
New EV Models are Playing a Major Role in Increasing Sales
The South
Korean automaker's new Electric-Global Modular Platform (E-GMP) - which forms
the base for many of its EVs - has led to an improved sales mix in 2023.
This is
alongside strong demand for its first few offerings under the architecture: the
Hyundai IONIQ 5 and Kia EV6, as well as the respective upcoming models, like the
IONIQ 6.
These new electric vehicle (EV) models have played a major role in helping Hyundai and Kia to hit record exports- both from their home country and from abroad- even as they look to challenge industry leaders such as Tesla!
Learn More: Kia EV9- The Latest 7 Seater EV Offering from Kia!
EV Exports Nearly Doubled for Both Hyundai and Kia in 2023
Enjoying
the benefits of strong demand for EVs, Hyundai and Kia have posted incredibly
impressive growth of late in the US market.
Combined EV
exports nearly doubled between the two from 2020 to 2022. Both companies
recently had their best-ever November sales months in the US, and they've now
tallied 16 consecutive months of year-over-year growth stateside.
In fact, Hyundai and Kia's EVs were second only to Tesla in terms of US sales during Q3. Their vehicles represented a healthy chunk- 7.5% of all US EV registrations; that figure was higher than similar metrics for GM's Chevrolet (5.9%) or Ford (5.5%).
Both Hyundai and Kia have Ramped Up EV Production to Meet Demand
Hyundai and
Kia have significantly ramped up EV production in recent months as a means by
which to better meet what is clearly a growing global demand for electric
vehicles. Both companies expect their future exports of EVs to set annual
records.
Hyundai
broke ground on a dedicated EV factory in Ulsan last month. Once operational,
the plant will have the ability to churn out 200,000 EVs each year.
Additionally,
work has already begun on Hyundai’s first-ever US-based EV and battery
manufacturing plant ($5.5 billion); construction began back in October, and
99.9% of the work is almost complete! This will enable Hyundai to qualify for
the EV tax credit policy in the US!
This
facility is key because it eventually will allow nearly all of the Hyundai EV
offerings sold in the US to tap into that market’s federal tax credit regime– drivers
who purchase an eligible electric vehicle can receive a bonus tax credit worth
thousands of dollars!
Finally, Hyundai has also opened a new dedicated plant-facility which is capable of producing custom EVs. It is a 7-story smart-facility that is capable of producing approximately 30,000 EVs a year!
Learn More: Edmunds Rate the Hyundai Ioniq 6 as the Fastest Charging EV Ever!
The Bottom Line
The media
often likes to claim that the electric vehicle market is slowing, but this
narrative doesn't apply to Hyundai and Kia. Both companies have doubled down on
the EV market and the results show it: The IONIQ 5 and EV6 are setting records
for both brands with their all-electric vehicles.
Both models
have won awards and generally seen a great deal of popularity. Kia has
continued pushing forward ever since with its next wave of EVs that will look
to continue this momentum. This includes the global rollout of its first
three-row electric SUV, the EV9, which already has received reservations in all
50 US states.
Kia last
month also revealed several new affordable EVs at its annual EV day- including
the offerings known as the EV5, EV4 and even an oddly monikered model called
the “EV3”- helping to further expand what increasingly appears to be a brand
just as focused on making sure it plays a big role in an industry shifting
toward electric power.
While
Hyundai hasn’t been quite active as Kia when it comes to churning out new
models, that should change over time. The company is expected next year reveal
its first three-row electric SUV known so far only as IONIQ 7!