Hyundai Motor, Kia top Ford, GM in US EV sales with affordability

Hyundai Motor Group, including Kia, is leveraging affordability to capture a larger market share in the US. By offering low-cost electric vehicles, Hyundai Motor Group, in conjunction with Kia, has outperformed American automakers Ford and GM in the US EV market during the first three months of 2024.

Hyundai, Kia Leading Ford, GM in EV Sales with Affordability

After the IONIQ 5 emerged as the sixth best-selling EV in the US last year with nearly 34,000 units sold, Hyundai (as well as Kia) have made a strong start in the US this year.

Hyundai’s top-selling electric SUV, the IONIQ 5, achieved a new sales record last month, driving EV sales up by 100% compared to the previous year.

During the first three months of 2024, Hyundai sold 6,822 IONIQ 5 models, setting another record. Sales of Hyundai’s second dedicated EV, the IONIQ 6, witnessed a remarkable increase of 1,542% in Q1 with 3,646 units sold.

Further enhancing the brand’s success was the major refresh given to Hyundai’s Kona EV this year. The 2024 Kona Electric was upgraded in every aspect, offering more range, faster charging, and a new stylish design.

Though Hyundai does not provide specific breakdowns for Kona sales, the sales of the subcompact crossover increased by 20% in Q1, with 23,054 units sold.

With a starting price under $33,000, the 2024 Hyundai Kona Electric stands as one of the most affordable EVs available in the US market.

In a recent study by auto research firm CarsDirect, the Kona EV is identified as one of the most budget-friendly models for lease in the US at just $169 per month, which encompasses gas-powered cars as well.

Affordable EVs are Emerging Victorious

The next most affordable vehicle to lease, whether gas or electric, is Hyundai’s IONIQ 6, starting at only $239 per month.

According to a recent report by Boston Consulting Group, the IONIQ is the sole EV that aligns with the expectations of potential buyers in terms of range, charging capabilities, and price. Tesla’s Model 3 comes in as the closest contender to meeting these criteria.

The IONIQ 5, Hyundai’s latest EV in the US market, is not only one of the most affordable in its class but also boasts superior range and features compared to most competitors.

Hyundai is currently offering a rare 0% finance deal on the IONIQ 5, with lease payments starting as low as $229 per month.

Meanwhile, Kia introduced a new lower-priced Light Long Range EV6 model this year, starting at $45,950 with up to 310 miles of range. This new addition greatly contributed to the increase in sales to 4,059 units during the initial three months of 2024, up from 3,392 the previous year.

The affordability factor has propelled Hyundai Motor, encompassing Kia, to surpass Ford and GM in the US EV market for the first quarter.

While Ford sold 20,223 electric cars in the first quarter of 2023 and GM sold 16,425, the combined sales of the Hyundai IONIQ 5 and IONIQ 6, alongside Kia’s EV6 and EV9, accounted for over 18,500 EVs sold in Q1.

With the inclusion of the Kona and Niro EVs, it is anticipated that Hyundai Motor sold well over 25,000, if not 30,000, EVs in the US last quarter. This figure does not even factor in the sales of its luxury Genesis brand.

Despite Kia’s recent shift towards introducing more hybrids, the company is doubling down on affordable electric vehicles. Models like the EV2, EV3, EV4, and EV5 are slated for release over the coming years, with starting prices ranging between $25,000 and $50,000.

Ford is also reshaping its strategy to focus on smaller, more cost-effective electric models as it aims to compete with Tesla and budget-friendly Chinese automakers like BYD. The company is working on a new low-cost EV platform, with the initial models being a smaller electric pickup and SUV scheduled for launch in 2026.

Meanwhile, GM is phasing out its least expensive EV, the Bolt (for the time being), as it concentrates on scaling up production of its Ultium-based models such as the new Chevy Equinox and Blazer EVs.