Hyundai Is Expecting Challenges Ahead Despite Reporting Record EV Figures
Last week, Hyundai Motor America, subsidiary of Hyundai Motor Company (OTC:HYMTF) reported its second quarter delivery figures, showing a rise in EV sales, with IONIQ 5 and IONIQ 6 EVs setting new records in the second quarters. Its IONIQ 5 is among America’s best-selling EVs. However, this week brought a cold-shower lawsuit that accuses Hyundai Motor America of artifically inflating its EV sales figures, using a false narrative to mislead the public to believe that its EV sales are growing organically, as the result of desirability of its EVs and customer demand
The lawsuit for a false narrative.
The lawsuit was filed in federal court in Chicago by Napleton Aurora Imports in Illinois and affiliated franchises, stating that Hyundai pressured its dealers within a system where those who agreed to play the game were rewarded, while others that refused ended up punished, such as by being forced to push unpopular vehicles.
Second Quarter And First Half Of 2024 Figures
During the second quarter, Hyundai’s figures got a boost from IONIQ 5, whose volume rose from first quarter’s 6,819 to 7,906 in the second quarter. Together, these two make 18,728 vehicles during the first half of the year. Hyundai reported EV sales growth of about 15% YoY, with the IONIQ 5 and IONIQ 6 EVs setting new sales records. A total of Hyundai brand vehicle sales amounted to 214,719 vehicles, which translates to a 2.2% YoY increase, while first half total sales grew 1.2% YoY.
June had also set some records.
The IONIQ 5, Tucson HEV, Santa Fe HEV, Palisade, Elantra HEV and Elantra N had their best June. During the month, Hyundai sold 4,669 EVs in the US, which translates to a YoY growth of 9%. Yet, total June sales dropped by 2.5% YoY to 67,631 units.
Kia America’s figures.
During the first half of 2024, Kia reported it sold 29,392 EVs, which is an impressive rise of 112% YoY and its new EV sales record with its champions EV6 and EV9. This year so far, EV6 grew 31.3% to 10,941 sold units and the EV6 is not far behind with 9,671 units, but YoY growth is impossible to assess as it wasn’t being sold last year.
But in June alone, Kia reported a slight overall sales drop of 6.5% YoY, second quarter sales also decreased by 1.6% to 206,839, a decrease of 1.6 percent with first half of the year sales contracting by 2% YoY to 386,460 vehicles.
Challenges are certainly ahead for Hyundai, one way or another.
Although it seemed for a moment that its three long-range, fast-charging, and affordable EVs available in the US have secured Hyundai’s positioning, the automaker also noted it is expecting more challenges in the remainder of the year with rivals like General Motors (NYSE:GM) and Honda Motor (NYSE:HMC) slated to release new EVs.
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