Hyundai Motor Co. and Kia Corp. have swiftly responded to the U.S. authorities’s decelerated electrical automobile (EV) transition tempo and initiated strategic changes. As demand contraction started in earnest following the elimination of EV subsidies in October, the businesses plan to delay the launch timing of latest fashions whereas advancing high-profit standard hybrid electrical automobiles (HEVs) to defend short-term efficiency and obtain market share enlargement.
In accordance with business sources on Dec. 15, Kia has determined to indefinitely postpone the launch timing of two electrical automobiles, the EV9 GT and EV4, within the U.S. market and entered right into a evaluation course of. These two automobiles correspond to new electrical automobiles that have been initially scheduled to enter the U.S. market on the finish of this yr (EV9 GT) and within the first quarter of subsequent yr (EV4), respectively. Reasonably than launching in accordance with the predetermined schedule, Kia determined to carefully monitor market situations and set an applicable timing once more.
The EV9 GT is a high-performance mannequin of the massive electrical sport utility automobile (SUV) EV9 and is taken into account a consultant mannequin symbolizing Kia’s electrification expertise. Together with the inexpensive electrical sedan EV4, it garnered consideration as a card to broaden the demand base within the U.S. market. Expectations have been excessive that it might not solely goal the mid-to-low-price electrical automobile market but additionally take up shoppers in search of to enter the high-performance section.
Nevertheless, the market ambiance modified quickly because the U.S. authorities’s electrical automobile subsidy coverage ended on the finish of September. Electrical automobile demand considerably declined as buy subsidies of as much as $7,500 (roughly 10 million gained) disappeared. Kia’s U.S. electrical automobile gross sales final month truly plummeted 60.8% year-over-year to 1,711 models. Following October (1,331 models) when electrical automobile subsidies disappeared, gross sales fell in need of 2,000 models for 2 consecutive months. Primarily based on the January-November interval, gross sales dropped to simply 32,131 models, a pointy 37.5% lower in comparison with the identical interval final yr.
Kia plans to actively reply to quickly altering market situations by hybrid vehicle-centered gross sales. The brand new Telluride geared up with a hybrid engine will launch within the U.S. within the first quarter of subsequent yr, resolving the absence of latest automobiles as a result of hole left by the EV9 GT and EV4. This automobile is a big SUV focusing on the North American market, and beginning with this second-generation mannequin, it applies a hybrid system to dramatically enhance gas effectivity. The just lately unveiled new Seltos additionally added a hybrid mannequin for the primary time. The corporate set a objective to promote 130 thousand models yearly (100 thousand models within the U.S.) in North America together with the USA.
Hyundai Motor Co. can be pursuing an analogous technique. Whereas sustaining the key route of electrification transition, it flexibly adjusts predominant automobile fashions in accordance with market demand. Ranging from the fourth quarter of this yr, Hyundai started promoting the brand new Palisade geared up with a next-generation hybrid system within the U.S., offsetting electrical automobile sluggishness. Hyundai Motor and Kia’s U.S. hybrid automobile gross sales final month reached 36,172 models, a 49% enhance in comparison with the identical month final yr.
Because of the sturdy efficiency of hybrid automobiles, Hyundai Motor and Kia’s U.S. gross sales efficiency is anticipated to set a file excessive this yr. The 2 firms’ U.S. gross sales from January to November reached 1,599,908 models, carefully approaching the earlier file of 1,633,290 models final yr. Contemplating December efficiency, gross sales are anticipated to far exceed 1.7 million models, additional growing market share. Hyundai Motor and Kia recorded fourth place in U.S. market share final yr, following Normal Motors, Toyota, and Ford.
An business official mentioned, “Hybrid automobiles are rising as a rational various in a high-interest fee and high-inflation surroundings attributable to lowered charging infrastructure burden in comparison with electrical automobiles and clear gas effectivity enchancment results,” including “Hyundai Motor and Kia’s technique centered on hybrid automobiles is a sensible option to concurrently defend gross sales efficiency and market share.”
