Category: Hyundai

Decline in Global Sales

Hyundai Motor Company, encompassing both Hyundai and Genesis brands, reported a year-over-year decrease in global vehicle sales for April 2024, totaling 345,840 units, which marks a 3.3% drop. For the first four months of the year, the company saw a slight decrease of 0.3%, with 1,352,607 vehicles sold. This decline reflects a broader trend, as the company’s electric vehicle (EV) sales have also been falling for the sixth consecutive month.

Impact on EV Segment

In 2023, Hyundai’s global plug-in car sales surpassed 300,000 units, showcasing a 29% increase compared to the previous year. However, the trend reversed in 2024, with a notable decline of nearly one-third in plug-in sales volume. In April alone, Hyundai and Genesis sold 21,605 plug-in cars, a 24% decrease year-over-year, with all-electric car sales down by 27% to 17,398 units.

Market Analysis and Future Outlook

Despite the overall downturn, Hyundai’s EV sales in the U.S. have shown resilience, with models like the Ioniq 5 and Kona Electric continuing to perform well. Globally, the company’s plug-in hybrid car sales also experienced a 7% decline. Looking ahead, Hyundai remains committed to expanding its EV lineup and addressing the challenges in the market, aiming to recover and grow its share in the competitive EV sector. The start of the year has been challenging, but the company is focusing on strategic initiatives to bolster its position.

The result is good, but only slightly better than in the case of the regular version.

The new, entry-level Hyundai Kona Electric version, equipped with a 48.6-kilowatt-hour battery, recently was listed on the U.S. Environmental Protection Agency (EPA) website, revealing its official range and energy consumption ratings.

The EPA Combined range is 200 miles, compared to 261 miles in the case of the regular version with a 64.8-kWh battery. The switch to a 33% higher battery capacity translates into a 30.5% higher range, indicating that the smaller version should be more efficient.

It will be interesting to see whether the 200-mile Hyundai Kona Electric will attract customers looking for a basic EV. The difference between the two is $4,000 or over $65 per mile of additional range.

The 2024 Hyundai Kona Electric SE (48.6 kWh) with 17-inch wheels’ energy consumption, including charging losses, is estimated at 118 MPGe or about 286 watt-hours per mile (3.5 miles/kWh), one of the best results among EVs on the market.

Energy consumption is close to 2% lower than in the case of the Kona Electric with a 64.8-kWh battery. In other words, it seems that a smaller and lighter battery improves efficiency only slightly, although there are some other factors involved, too (lower-power electric motor).

Let’s note that the highway MPGe ratings are noticeably lower than the combined values. We estimate the EPA Highway range is about 20-30 miles (or over 10%) lower. However, this is only a rough estimate because the MPGe number includes charging losses.

In the past, the main competitor of the Hyundai Kona Electric was the Chevrolet Bolt EV/Bolt EUV duo (now retired).

Because the Hyundai Kona Electric is imported and not qualified for the $7,500 federal tax credit (the incentive might be available through leasing), its competitive position is weaker. The starting price for the entry-level version is $32,675 (plus a $1,335 destination charge). Some other considerably larger models can be purchased at a similar price.

Hyundai’s April Sales Overview

In April 2024, Hyundai Motor America reported 68,603 vehicle sales, marking a 3.1% year-over-year decrease. Despite this dip, Hyundai’s electrified vehicle segment, including EVs, PHEVs, and HEVs, has shown significant growth. Notably, the sales volume of electrified cars increased by 26% year-over-year, with all-electric car sales rising by 31%.

Growth in Hyundai’s EV Sales

Hyundai has started 2024 on a strong note with its EV sales in the U.S. experiencing rapid growth. In the first four months of the year, the company sold over 15,000 units of the Ioniq 5 and Ioniq 6 models, a 68% increase from the previous year. In April alone, Hyundai sold 4,955 electric vehicles based on its E-GMP platform, representing a 54% increase year-over-year and accounting for 7.2% of Hyundai’s total sales volume, up from 4.5% a year ago.

The breakdown includes 3,702 units of the Ioniq 5 (a 59% increase year-over-year) and 1,253 units of the Ioniq 6 (a 41% increase). Additionally, although specific numbers for the Hyundai Kona Electric are not reported separately, Hyundai disclosed that overall all-electric vehicle sales, including the Kona, increased by 31% year-over-year.

Year-to-Date Performance and Future Outlook

So far in 2024, Hyundai has sold more than 15,400 units of the Ioniq 5 and Ioniq 6 in the U.S., reflecting a 68% year-over-year increase and making up 6.1% of the brand’s total volume. For context, Hyundai sold 46,917 units of these models throughout 2023, representing 5.9% of the total sales volume.

Hyundai’s performance in the first half of 2024 appears promising, but maintaining this growth in the second half will be challenging due to a higher base of comparison. The official statistics do not include sales figures for other plug-in models like the Santa Fe PHEV and Tucson PHEV, as these are reported alongside conventional or non-rechargeable hybrids.

Challenges and Additional Insights

The hydrogen fuel cell model, Hyundai Nexo, sold 13 units in April, a 19% decrease year-over-year, with a total of 64 units sold in 2024, down 21% from the previous year. Despite these challenges, Hyundai’s strong performance in the EV sector indicates a positive trend towards electrification.

Hyundai’s continued focus on expanding its EV lineup and improving sales strategies is crucial for sustaining growth. The increasing popularity of the Ioniq models showcases Hyundai’s commitment to providing competitive and appealing electric vehicles in the U.S. market. As the year progresses, Hyundai’s ability to innovate and meet consumer demand will be key to its success in the evolving automotive landscape.