"Kia's European Sales Grow by Double Digits; Hyundai Motor Seeks Rebound with IONIQ 3": LS Securities

[Financial News] Hyundai Motor and Kia are seeing an opportunity to expand sales and recover market share in Europe, where demand for electric vehicles is growing rapidly. Kia has continued to post sales growth above the market average, while Hyundai Motor is seeking a rebound with the affordable IONIQ 3. Small cars favored by local consumers, competitive pricing, and local production are seen as key to their strategy in Europe.
According to a report released on the 30th by LS Securities based on data from the European Automobile Manufacturers' Association (ACEA), Kia's European sales totaled 36,392 vehicles in August, up 15.5% from the same month a year earlier. That exceeded the 5.3% growth recorded across the combined markets of the European Union (EU), the European Free Trade Association (EFTA), and the United Kingdom. Kia's market share rose 0.4 percentage points to 4.4%.
Kia has recorded double-digit sales growth for four consecutive months since May. Hyundai Motor, however, sold 26,228 vehicles in August, a 30.0% decline, bringing the two companies' combined sales to 62,620 vehicles, down 9.2%. Their combined market share stood at 7.5%.
The IONIQ 3 has been identified as a potential driver of Hyundai Motor's recovery. According to the report, Hyundai Motor began producing the IONIQ 3 in Türkiye in August, with sales expected to gradually expand from October. The model is regarded as a strategic vehicle for restoring market share, combining the small hatchback format favored in Europe with a price below £25,000 and a local production base.
Growing demand for electric vehicles in Europe is another opportunity. European new-vehicle sales totaled 832,637 units in August, including 243,207 battery-electric vehicles, an increase of 52.2%. Battery-electric vehicles accounted for 29.2% of sales, up 9.0 percentage points from a year earlier. In contrast, sales of internal-combustion vehicles fell 23.4%, indicating that the market is shifting toward electrified vehicles.
Competition is intensifying. The report analyzed that strong sales growth at Chinese manufacturers such as BYD and Chery, along with electric vehicles, had driven growth in the European market. Hyundai Motor's challenge is to convert the IONIQ 3's pricing and product appeal into actual sales growth.
The impact of the new model is expected to become more significant next year. LS Securities said the IONIQ 3's contribution to this year's results would be limited because the fourth quarter will focus on ramping up initial production and supplying sales networks. However, if the IONIQ 3 reaches next year's sales target of 40,000 units, the model is estimated to generate approximately KRW 1.5 trillion in revenue. After accounting for sales overlap with existing electric vehicles, the net revenue increase is projected at approximately KRW 1.2 trillion.
[email protected] Kim Dong-ho Reporter