Hyundai Motors and Kia Motors are actually selling more.
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The difference seems too big, but Tesla is so dominant...
Hyundai and Kia are emerging as Tesla's biggest competitors in the US electric vehicle market. They ranked second in US electric vehicle sales last year, selling the most electric vehicles after Tesla. This is an analysis that the two companies belonging to the Hyundai Motor Group are ahead of their non-Tesla competitors with new electric vehicle models and aggressive pricing policies. It is not a brain official, but various mainstream North American media outlets such as the Wall Street Journal and the New York Times are talking about them as meaningful rivals .
Their growth has come from bold investments in electric vehicle technology over the past decade, which has made them a significant competitor in the market as electric vehicle sales have surged. Hyundai and Kia offer a wider range of electric vehicles than many competitors, including Tesla, with battery technology that enables fast charging and a range of models from large SUVs to affordable crossovers and sedans.
Hyundai and Kia have grown sales despite manufacturing their electric vehicles outside of North America, despite not being able to take advantage of the $7,500 tax credit that would offset the high cost of purchasing an electric vehicle. The tax credit was changed under the Inflation Reduction Act to allow only vehicles manufactured in North America to qualify. While this change initially hurt demand, the companies have found a solution: leasing. Finance companies can take advantage of the $7,500 tax credit when they lease an electric vehicle, and Hyundai and Kia have passed the savings on to customers in the form of lower monthly lease payments, increasing their interest in the vehicles.
Personally, I think this part is a godsend. If you purchase a car through a lease or rental rather than simply buying it, you can receive the subsidy as is. Rather, Hyundai and Kia have taken advantage of this and marketed and sold it to users in a way that allows them to buy electric cars at a lower price, regardless of the IRA statute of limitations. (For example, Ioniq 5 67 million won → Ioniq 5 down payment 30 million won, monthly payment of 290,000 won, and then 36 months of vehicle acquisition) In this way, the burden on users has been reduced. For consumers who are struggling financially, leasing is a less burdensome way for those who need to use a car.
Just a decade ago, Hyundai and Kia were seen as latecomers in the auto industry, producing affordable vehicles. But in recent years, especially in the United States, their image has changed as electric vehicle sales have skyrocketed. In 2017, spurred by Tesla’s Model 3 launch, Hyundai and Kia decided to launch lineups that were designed from the ground up to be electric. This was an early step forward for the established automakers in the market.
Hyundai and Kia will soon face more competition. The number of electric vehicles available for sale is expected to nearly double this year, to about 100. The two companies currently have an advantage because of the breadth of their models, but other automakers are catching up, including plans to offer more affordable electric vehicles. There are also growing concerns within the auto industry that demand for electric vehicles is cooling in the U.S. As a result, some automakers are rethinking their electric vehicle production plans and holding back on investing in electric vehicles.
Meanwhile, the two Korean automakers are accelerating their plans to expand electric vehicles in the U.S., building a new plant and battery manufacturing facility in Georgia and renovating an existing plant for $200 million to boost EV production. Kia’s Steven Center, a vice president, said the company is trying to accelerate and scale new model launches to make the most of its early momentum.
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