As Korea's electric vehicle market emerges from the chasm—an interim demand slump—that persisted in recent years and shows signs of recovery, Hyundai Motor is struggling to keep up with the market's growth. In the first half of the year, Hyundai Motor's EV sales fell short of even a single model, Tesla's midsize sport utility vehicle Model Y, and were only about half of its "under-one-roof family" Kia.
According to the car industry on the 29th, total domestic EV sales through June came to 201,096 units, a 118% surge from the same period a year earlier. The EV chasm that weighed on the market for several years has ended, and demand has started to revive.
Hyundai Motor's EV sales, however, rose only 46.5% in the same period. Hyundai Motor sold 39,575 EVs through June.
By model, the core product, the compact SUV Ioniq 5, sold 11,894 units, up 73.2% from a year earlier. The midsize sedan Ioniq 6 rose 68.4% to 4,975 units, and the full-size SUV Ioniq 9 more than doubled to 7,239 units, respectively.
But for the luxury brand Genesis, EV sales of the GV60, GV70 and G80 all came in under 1,000 units. The G80 EV rose 22.4% year over year to 732 units. The GV60 increased 73.2% but still remained at 627 units. The GV70 sold 714 units, up 8.5%.
Looking at EVs based on internal combustion models, the small SUV Kona Electric sold only 2,642 units, up 49% from the same period last year, and the commercial Porter EV sold 5,148 units, up 2.1%. The mini SUV Casper Electric sold 4,431 units, down 2%.
In overall EV market share, Hyundai Motor ranked third. Kia led the way in the first half, selling 72,078 units, a 151.1% surge from a year earlier, followed by Tesla at 56,139 units, up 192.2%.
In the first half of this year, the single model with the highest sales, across domestic and imported cars, was Tesla's Model Y. Combined sales of the Model Y Premium, Model Y L (long body) and Model Y Premium Long Range totaled 43,359 units. Even adding up sales across Hyundai Motor's entire EV lineup, the total fell short of the single Model Y, dealing a blow to its reputation.
Industry watchers cite weaker brand competitiveness versus Tesla and a limited model lineup as reasons Hyundai Motor has failed to make its presence felt in the EV market.
◇ EV fandom gravitates to Tesla… "Hyundai Motor isn't innovating"
U.S. EV maker Tesla has been first to roll out several cutting-edge technologies, earning high interest and recognition in Korea. Its lineup totals just three—Model Y, the midsize sedan Model 3, and the commercial Cybertruck—but the Model Y has expanded its range in various forms and is drawing in domestic demand.
Tesla further boosted its standing by selling vehicles equipped with Full Self-Driving (FSD) from November last year in Korea. For the Cybertruck, Model S and Model X produced in the United States, FSD commercialization has been allowed in Korea under the Korea-U.S. Free Trade Agreement (FTA). However, the Model S and Model X are currently discontinued.
The Model Y sold in Korea is produced in China, so the FSD function cannot be used. Still, Tesla's other electrification technologies are outstanding and its brand value in the EV market is so strong that many say Hyundai Motor is no match.
Tesla has launched a long-body Model Y with overall length extended by 180 millimeters and wheelbase by 150 millimeters compared with the existing model, and is preparing a standard model with fewer convenience features and a lower price, absorbing a wide range of demand.
Hyundai Motor Group has also poured money into Autonomous Driving technology for many years. It fully acquired the autonomous driving startup 42dot in 2022 after investing since 2019 and then launched the AVP division to oversee development of Autonomous Driving, electrification and software-defined vehicles (SDV). However, Hyundai Motor has yet to secure Full Self-Driving technology on par with Tesla.
Beyond Tesla, General Motors (GM) is developing an Eyes-off system—an Autonomous Driving technology that allows drivers not to watch the road under certain conditions—and preparing for rollout. In China, IT and carmakers such as Baidu and Geely Automobile Holdings are also known to have secured near-complete autonomous driving technology.
An auto industry official said, "Hyundai Motor has fallen behind competitors in developing Autonomous Driving technologies linked to electrification, leading consumers to shun it as a brand that 'failed to innovate' in the EV market."
◇ Kia expands its EV lineup… only three Ioniq models, brand positioning falters
Hyundai Motor has operated Ioniq as a dedicated EV sub-brand since 2021. But the Ioniq brand's EV models number only three: Ioniq 5, Ioniq 6 and Ioniq 9. While Tesla, which also has a small lineup, dominates Korea's EV market with its "hit product" Model Y, Ioniq lacks a standout model.
Kia, by contrast, offers a far more diverse EV lineup: the small SUV EV3, the compact sedan EV4, the compact SUV EV5, the coupe-style SUV EV6 and the midsize SUV EV9. In the commercial segment, it has sold the electric multipurpose PV5 since last year and plans to roll out the larger PV7 next year.
An industry official said, "Kia has achieved perfect balance with its existing internal combustion lineup by covering a wide range of passenger models—from minicars to mid- and large-sized cars, and from sedans to SUVs—and even dedicated electric commercial vehicles."
The official noted, "With a lineup of only three models, Ioniq inevitably faces limits in expanding its footing as an EV brand," adding, "That's why Hyundai Motor still has the image of a brand driven by internal combustion volume models—represented by the Grandeur, Sonata, Santa Fe and Tucson—rather than EVs."
Industry watchers also warn that Hyundai Motor could face increasing difficulty boosting market share in Korea's EV market. With a stream of low-priced Chinese EV makers entering, consumers seeking value for money may turn away.
BYD, which entered Korea last year, sold 11,675 units in the first half, a surge of 807.9% year over year, ranking fourth among imported brands. This year, Zeekr, the premium brand of China's Geely Automobile Holdings group, began selling the midsize electric SUV 7X, and Chery and Xpeng are also preparing to enter the market.
Lee Hang-gu, a special professor at Pyeongtaek University, said, "Unlike Kia, which is aggressively expanding its EV lineup, Hyundai Motor is trending toward focusing on hybrids," adding, "EVs have thinner margins than internal combustion and hybrid cars, and with low-priced Chinese EVs waging price wars, Hyundai Motor also finds it hard to compete on price—making it difficult to commit massive investment to EVs."