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Korea Herald
27-04-2025
- Automotive
- Korea Herald
Hybrids drive Hyundai, Kia SUV sales
Four out of ten Hyundai Motor Company and Kia sport utility vehicle buyers opted for hybrid models in the first quarter of this year in the South Korean market, highlighting the penetration of dual-power vehicles amid a slowdown in electric vehicle demand. According to industry sources Sunday, Hyundai Motor and Kia sold 150,492 SUVs, of which 59,386 units were hybrids, accounting for 39.5 percent. Last year, the domestic sales of Hyundai and Kia hybrid SUVs nearly doubled from 117,499 units in 2022 to 244,776 units, with the hybrid purchase ratio reaching 40.8 percent. Notably, Hyundai, which historically had a lower volume of SUV sales than Kia, has witnessed a dramatic surge in hybrid SUV sales, rising 3.5 times from 26,250 units in 2022 to 92,290 units in 2024. This growth has led to a consistent increase in the share of hybrid SUV models from 12.3 percent to 37.6 percent in the same period. Hyundai's Santa Fe Hybrid stands out as the best-selling vehicle powered by an internal combustion engine and an electric motor, with its hybrid purchase ratio increasing from 47 percent in 2022 to 77 percent in the first quarter. In addition, for the All-New Palisade, launched in January this year, it has been reported that 67 percent of the preorder customers have chosen the hybrid model. In the case of Kia, its Sorento Hybrid topped domestic SUV sales from January to March with 26,676 units. The Carnival and Sportage Hybrid SUVs secured the No. 2 and No. 3 positions, respectively, demonstrating the strong competitive edge of Kia's recreational vehicle lineup within the brand. Industry watchers anticipate that hybrid vehicles could surpass 50 percent of total local SUV sales this year for Hyundai and Kia, potentially offsetting the impact of automobile tariffs imposed by the US. 'Hybrid vehicles are approximately 20 percent more expensive than the internal combustion engine variants and boast higher profit margins,' said Kim Pil-su, a car engineering professor at Daelim University. 'Hyundai, along with Kia, has incorporated hybrid engines across nearly all of its car lineup, appealing to customers who prioritize fuel efficiency and seek a practical alternative to electric vehicles.' During the automaker's recent conference call, Lee Seung-jo, head of the finance and planning division of Hyundai Motor Group, stressed that Hyundai achieved record-breaking sales revenue and operating profit for the first quarter, which was primarily driven by the highest-ever sales of hybrid vehicles. From January to March, the sales volume of Hyundai Motor and Kia's eco-friendly cars worldwide climbed 38.4 percent and 10.7 percent, respectively, to 212,426 and 174,000 units from the previous year. Hybrids accounted for 64.5 percent of Hyundai's and 59.8 percent of Kia's eco-friendly vehicle sales.
Nikkei Asia
24-04-2025
- Automotive
- Nikkei Asia
Hyundai piles up car inventory in US ahead of Trump tariff
SEOUL -- Hyundai Motor revealed on Thursday that it has more than three months of inventory in the U.S., as the South Korean automaker shipped them before U.S. President Donald Trump imposed a 25% tariff on foreign-made cars early this month. "We have strategically scheduled shipments through the end of March to optimize our inventory levels of vehicles and parts," Vice President Lee Seung-jo said in a conference call.
Korea Herald
24-04-2025
- Automotive
- Korea Herald
Hyundai Motor posts record Q1 sales, profit despite US tariff woes
Korean automaker launches US trade policy task force, accelerates local parts sourcing efforts Hyundai Motor Company achieved record-breaking sales and profit for the first quarter amid the deepening concerns over the 25 percent tariffs on automobiles and car parts imposed by Donald Trump. According to the carmaker's earnings report on Thursday, its sales revenue increased 9.2 percent to 44.4 trillion won ($31.1 billion), while its operating profit climbed 2.1 percent to 3.6 trillion won from January to March compared to last year. Its operating profit margin hit 8.2 percent. Hyundai Motor's first-quarter revenue and profit surpassed the market estimates by 2.2 percent and 2.6 percent, respectively. 'Despite increased industry average incentives in Europe and North America, as well as investments in new models and research and development, Hyundai achieved record-high first-quarter results,' said Lee Seung-jo, head of the finance and planning division of Hyundai Motor Group, during a conference call. 'This was driven by the highest-ever sales of hybrid vehicles, strong performance in the North American market and favorable won-dollar exchange rate.' The company sold 1 million vehicles worldwide, a 0.6 percent decrease from the previous year, with sales outside Korea declining 1.4 percent to 834,760 units, impacted by unfavorable global market conditions. However, the North American market showed robust sales of 560,000 units. Global sales of eco-friendly vehicles surged by 38.4 percent compared to last year, reaching a total of 212,426 units, with electric vehicles and hybrids representing 64,091 units and 137,075 units, respectively. Although the US' 25 percent levies on vehicles and auto parts, which took effect on April 3, have not directly impacted the first quarter earnings, Hyundai Motor pledged to minimize tariff impacts. 'We have established a task force to address US tariff challenges (in mid-April) to optimize our profitability-based operational hubs and actively pursue Capex (Capital Expenditure) and Opex (Operating Expenditure) contingency plans,' said Lee. 'The company is also enhancing production efficiency at our Alabama plant and Hyundai Motor Group Metaplant America in Georgia to reduce costs.' Hyundai Motor also stressed that it focuses on localizing parts sourcing in the US and is actively vetting new parts suppliers in the region. It identifies fast-track items to accelerate the tariff reduction effect and optimize logistics solutions. The carmaker will keep the current retail vehicle prices in the US until June 2 by selling off its inventory, after which prices will be determined by market demand. Although the auto manufacturer committed a $21 billion investment in the US — including $8.6 billion in automotive manufacturing, $6.1 billion in parts, logistics and steel, and $6.3 billion in future industries and energy sectors — 25 percent reciprocal tariffs on imported vehicles and parts was introduced as planned. In addition, Hyundai Motor plans to actively promote sales of new models such as the All-New Palisade, the All-New Nexo and the New Ioniq 6 while strategically implementing enhanced localization strategies for each market. Hyundai is also committed to maintaining growth momentum by driving innovations and strengthening competitiveness in response to complex business risk factors. Based on these strategies, the carmaker aims to maintain its annual guidance of 3-4 percent revenue growth and 7-8 percent operating profit growth as announced in January.
