Hyundai Motor and Kia sold more than 600,000 hybrid electric vehicles (HEVs) globally in the first half of this year. The sales volume of HEVs for the two companies, which was around 130,000 units in the first half of 2020, has increased nearly fivefold in five years. Hyundai Motor Group is focusing on HEVs as demand for electric vehicles has slowed.
In the first half of this year, Hyundai Motor sold 331,227 HEVs (including plug-in hybrid vehicles) worldwide. This figure represents a 28.5% increase from the same period last year (257,775 units), marking the highest sales volume for a first half on record. Kia's HEV sales for the first half of this year totaled 274,112 units, an increase of 16.1% compared to a year ago (236,156 units), also the highest for a first half. The share of HEV sales among total sales was 16% for Hyundai Motor and 15% for Kia.
The combined HEV sales for Hyundai Motor and Kia in the first half of the year reached 605,339 units. In the same period last year, a total of 493,940 units were sold, an increase of 22.6% from that figure. With sales exceeding 600,000 units in the first half, there are projections that Hyundai Motor Group's HEV sales this year will surpass 1 million units.
The North American market has driven the increase in HEV sales for Hyundai Motor Group. The United States has a high preference for sport utility vehicles (SUVs) and HEVs. Hyundai Motor sold 76,571 HEVs in North America in the first half of this year, while Kia sold 59,609 HEVs. A Hyundai Motor Group official noted that this is the effect of new model launches.
As demand for electric vehicles has slowed, Hyundai Motor Group has been increasing its HEV models to target the market. Hyundai Motor has operated HEV models for the Avante, Grandeur, Tucson, and Santa Fe, and added the Palisade HEV this year. The domestic sales of the Palisade HEV, launched in March, reached 14,211 units, quickly approaching the sales volume of the gasoline model (15,184 units) within three months. Starting this month, the Palisade HEV is expected to begin full sales in the United States.
Kia, which previously sold HEVs of the K5, K8, Niro, Sportage, and Sorento, added the Carnival HEV last year. Kia plans to add an HEV model to the fully redesigned Seltos next year, with mass production scheduled for April. Additionally, the company aims to launch a new HEV model for the popular Telluride in North America, expanding its HEV lineup to 10 models. Kia is also developing a Genesis-exclusive HEV system, aiming for a launch in 2027.
Industry experts believe that even though the tax credit for electric vehicles will disappear at the end of September, the popularity of HEVs will continue. Hyundai Motor Group is adding HEV production facilities at its new U.S. plant, META Plant America (HMGMA), and is expanding its HEV lineup in response. The company plans to sell 1.33 million HEVs by 2028.