Kia Overtakes Hyundai Motor in Europe and Seeks to Narrow the Sales Gap with EVs and SUVs

[Financial News] Kia is reshaping the sales rivalry with Hyundai Motor in major global markets by focusing on electric vehicles and sport utility vehicles (SUVs). In Europe, Kia has overtaken Hyundai Motor in year-to-date sales, while in the domestic market it has narrowed the gap to its smallest level on record. Hyundai Motor plans to revive sales by adding Genesis hybrid electric vehicles (HEVs) and extended-range electric vehicles (EREVs) to the new models of its key vehicle lines.
According to the European Automobile Manufacturers' Association (ACEA) on the 28th, Kia sold 377,078 vehicles in Europe from January through August this year, 67,904 more than Hyundai Motor's 309,174. This reversed the ranking of the two brands from the same period last year, when Hyundai Motor led Kia by 7,786 vehicles. Kia's sales rose from 346,047 vehicles last year, while Hyundai Motor's declined from 353,833.
Hyundai Motor remains ahead of Kia in sales volume in the United States, but Kia is growing at a faster pace. Kia sold 83,793 vehicles in August, setting a new monthly sales record since entering the U.S. market. Hyundai Motor led Kia with 94,612 vehicles, but its sales trend turned downward for the first time in four months after April.
Competition in the domestic market has also intensified. Year-to-date sales stood at 399,159 vehicles for Hyundai Motor and 390,596 for Kia, narrowing the gap to 8,563 vehicles. This was the smallest cumulative sales gap ever recorded between the two brands.
Kia also outsold Hyundai Motor last month. Kia sold 40,213 vehicles, compared with Hyundai Motor's 34,333, for a difference of 5,880 vehicles. This was only the third time Kia had surpassed Hyundai Motor in monthly domestic sales since joining Hyundai Motor Group in 1999.
Kia's sales growth is believed to have been supported by its electrified product lineup and SUV range, tailored to demand in each market. Europe, the world's second-largest electric vehicle market after China, saw Kia capture demand with affordable EVs such as the Kia EV2 and Kia EV3. In the United States, Kia responded to demand shifting toward HEVs after the elimination of EV purchase subsidies with models including the Kia Niro, Kia Sportage, Kia Sorento and Kia Carnival.
Hyundai Motor is seeking to recover sales by introducing new models and expanding its powertrain options. In Europe, it plans to target the mass market with the locally tailored affordable EV IONIQ 3. The strategy is to broaden the base of EV demand with a small hatchback roughly the same size as the Kia EV2.
Genesis will also introduce HEVs for the first time. The move will expand its product lineup to meet demand for hybrids in the luxury vehicle market. Next year, Hyundai Motor plans to launch the Hyundai Santa Fe EREV in the United States to target demand between battery-electric vehicles and HEVs.
Key models launched this year, including the new Hyundai Elantra and Hyundai Tucson, are also expected to help revive sales. Industry observers say Hyundai Motor's sales growth next year will gain momentum once the impact of these new models is fully reflected.
An industry official said, "Hyundai Motor plans to counter Kia by diversifying its powertrain portfolio, including the introduction of EREVs and the addition of HEVs to the Genesis lineup."
[email protected] Kim Dong-ho Reporter