Hyundai Motor Group last month overtook Ford, one of the "Big 3" automakers, in the U.S. market to rank No. 3 in market share for the first time in about five years, according to an analysis. Ford's sales are continuing to fall, hobbled by the slump in electric vehicles. In the meantime, Hyundai Motor Group is moving quickly to fill Ford's gap by pushing hybrids (HEVs). At this pace, there is a view that it could threaten Ford on a full-year basis as well.
According to the securities industry on the 3rd, Mirae Asset Securities said on the 2nd, citing U.S. auto market researcher Autodata, that Hyundai Motor Group's U.S. market share in August reached 12.9%. That is a record high and surpasses Ford (12.2%), the previous No. 3. No. 1 is General Motors (GM) at 16%, and No. 2 is Toyota Group at 15%. Behind Hyundai Motor Group and Ford is Honda at 9%.
Kim Jin-seok, an analyst at Mirae Asset Securities, said, "(Hyundai Motor Group's August U.S. market share) is the highest in history and, excluding the COVID-19 period in 2021, the first time it has overtaken Ford."
On a cumulative basis from January to August, Ford's market share is 12.5%, 0.7 percentage point higher than Hyundai Motor Group's 11.8%. But there is an outlook that by the end of the year Hyundai Motor Group could close in on Ford or overtake it to rise to No. 3.
Ford Authority, a U.S. automotive outlet, said, "In recent years, Hyundai Motor and Kia have achieved dazzling growth in the U.S. market by rapidly expanding market share with reasonably priced vehicles that offer high fuel efficiency and distinctive designs," adding, "Ford now faces the possibility that Hyundai Motor Group could eventually surpass it in sales as well."
In fact, Hyundai Motor Group is showing steady growth in the U.S. market. Hyundai Motor sold 620,025 vehicles from January to August this year, up 2% from a year earlier. Kia sold 590,377, up 3%. In particular, Kia sold 83,793 vehicles last month alone, setting a monthly record. Hyundai Motor's sales last month were 94,612, down a slight 1.9%. Hyundai Motor Group's total sales last month were 178,405.
By contrast, Ford sold only 170,681 vehicles in the U.S. last month, down a sharp 10.3% from a year earlier. Reflecting this, sales from January to August this year were 1,347,147, also down 9.8%. In terms of growth, Hyundai Motor Group is ahead of Ford. Ford Authority projected Hyundai Motor Group's U.S. sales this year at 1,891,257 vehicles. That is a gap of 91,199 from Ford's 1,982,456.
In August, Ford struggled as sales of internal combustion vehicles (-4.6%), HEVs (-19.9%) and electric vehicles (-79.4%) all fell from a year earlier. Ford has said it will cut electric-vehicle spending and expand HEVs, but it is being assessed as somewhat late in shifting strategy. By contrast, Hyundai Motor Group moved early to focus on hybrids and has increased sales. Last month, Hyundai Motor Group's HEV sales jumped 47.7% from a year earlier to 50,057, a record high.
Hyundai Motor Group plans to continue its U.S. growth for the time being by leading with HEVs. Hyundai Motor in the U.S. has disclosed plans to launch 10 new HEV models by 2030, starting with the Genesis GV80 Hybrid, and to have HEVs account for 50% of total sales. Eric Watson, vice president of Kia America, said, "Kia is confident it can maintain record sales momentum through the end of the year and ultimately achieve a fourth consecutive annual sales record."