Although Hyundai Motor and Kia increased sales last year in major overseas markets excluding the United States, they are not all smiles. That is because their market share declined in a significant number of places. As they must offset the shock from high U.S. tariff rates in other markets, some analysts said they should focus on expanding their sales lineup to raise share.
According to the Society of Indian Automobile Manufacturers (SIAM) on the 27th, Hyundai Motor and Kia sold 852,164 vehicles in India last year, a slight increase from the previous year (850,433). Hyundai Motor sold 571,878 units, and Kia sold 280,286.
Market share came to 18.67%. Hyundai Motor had 12.53% and Kia 6.14%, ranking 4th and 6th, respectively. Hyundai Motor posted a 19.68% market share in 2024, but despite a slight increase in sales volume, its share fell by about 1 percentage point (p).
The share of Hyundai Motor and Kia also fell in the first quarter this year. Hyundai Motor sold 166,578 vehicles, up 8.4% from a year earlier, and Kia sold 153,550, up 103%. However, their first-quarter market shares were 12.5% and 6.3%, down 0.47 percentage point and 0.11 percentage point, respectively, from a year earlier.
That is because the pace of growth in India's auto market is outstripping Hyundai Motor and Kia. India's annual auto sales rose 5.6% to 4,565,098 last year from 4,320,216 in 2024.
Sales at India's Tata Mobility in the first quarter this year were 198,743, up 36% from a year earlier. Mahindra and Toyota sales also increased 23% and 19%, respectively.
Market share in China is also on the decline. According to the China Passenger Car Association (CPCA), Hyundai Motor and Kia sold 209,250 vehicles in China last year, up 3% from the previous year (203,012). However, their market share fell from 0.9% to 0.87%.
China's finished car market expanded from 22,566,299 units in 2024 to 24,091,524. Analysts said Hyundai Motor and Kia have not been able to regain share as they are being pushed back by Chinese electric vehicle companies that are even engaging in cutthroat competition.
In Europe, both sales and share fell. According to the European Automobile Manufacturers' Association (ACEA), Hyundai Motor and Kia's annual sales last year were 1,042,509, down 1.9% from 1,063,555 a year earlier. Market share also fell from 8.2% to 7.8%. Europe's auto sales last year were 13,271,270, up from 12,962,714 in 2024.
The same trend appears to have continued in the first quarter this year. Hyundai Motor and Kia's European sales in the first quarter this year totaled 260,018. That was down 2.7% from 267,297 in the first quarter last year. Market share was 7.4%, down 0.5 percentage point.
While the share of traditional finished car brands, including Hyundai Motor and Kia, all declined, Stellantis Group sold 563,490 vehicles and posted 16%, up 0.5 percentage point from a year earlier. Chinese electric vehicle maker BYD sold 73,847 vehicles, up 155% year over year, and Tesla recorded 78,745, up 44.9% from the first quarter last year. The two companies' market shares are 2.1% and 2.2%, respectively. As European local and Chinese brands grow in Europe, Hyundai Motor and Kia appear to have lost momentum in the market.
Brazil is similar. Hyundai Motor and Kia's sales in Brazil slipped slightly from 208,834 last year to 207,322 this year. In contrast, Brazil's annual auto sales last year were 2,549,462, an increase from 2024. Although the overall market is growing, Hyundai Motor and Kia's growth is instead slowing.
Hyundai Motor and Kia's struggles outside the United States are the result of failing to respond adequately to intensifying competition. Hyundai Motor and Kia are having difficulty competing with local companies in China and India. In India, not only Chinese electric vehicles but also traditional European companies such as Audi and Volkswagen have entered and are expanding their operations.
Industry observers say falling market share could negatively affect sales networks and brand preference, so countermeasures are needed. An official at a finished car company said, "If the decline in share continues, we will inevitably fall behind in platform competition, including after-sales service (A/S) and charging infrastructure installation."
Hyundai Motor and Kia plan to respond by expanding their lineup in Europe as the electric vehicle market there grows. Kia is focusing on converting internal combustion engine models to electric vehicles. Starting this month, it began full-fledged sales of the EV2, broadening its EV lineup up to the EV9. Hyundai Motor also plans to increase its EV sales models, led by the Europe-only Ioniq 3.
In China, the company aims to expand share through the Ioniq brand. Hyundai Motor plans to increase the lineup to a total of 20 by 2030, starting with the Ioniq V. First, within two years, it plans to unveil a total of six models—three electric vehicles including the Ioniq E and three extended-range electric vehicles (EREV). The Ioniq E, an electric sport utility vehicle (SUV), is the mass-production model of the concept car "Ioniq Earth" that Hyundai Motor unveiled earlier this month.
In India, the policy is to launch locally tailored vehicles. Hyundai Motor said the previous day that it would develop an electric three-wheeler with India's TVS Motor Company. Hyundai Motor Group also announced it would roll out 26 new models in India by 2030.