Hyundai-Kia To Surpass European Brand Sales In US

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Seoul April 10, 2016; Lee Hyo-sik writing for the Korea Times reported that Hyundai Motor and affiliate Kia Motors will soon sell more cars in the United States than 17 European brands combined, industry analysts said Sunday.

The two Korean automakers have maintained their market shares on a series of newly launched models this year, while the popularity of European-brand vehicles has waned among U.S. consumers following last year's Volkswagen emission-cheating scandal.

According to industry data, Hyundai and Kia sold a combined 319,651 cars in the world's largest automobile market in the first quarter of this year, accounting for 7.8 percent of the market. Volkswagen, BMW, Mercedes-Benz and 14 other European brands sold a combined 344,117, capturing 8.4 percent of the U.S. market.

The market share gap between Hyundai-Kia and the 17 European brands narrowed to 0.6 of a percentage point in the first three months of the year from a 1.2 percentage point gap last year.

Hyundai sold 173,330 cars, up 0.8 percent from the same quarter last year, while U.S. consumers bought 146,321 Kia vehicles, up 3.7 percent. In particular, Hyundai's all-new Tucson sport utility vehicle (SUV) was the most popular model with 7,830 sold in March, up 85.5 percent from a year earlier.

Both Korean carmakers posted record-high sales in the first quarter.

In contrast, Volkswagen's sales declined 12.5 percent to 69,314 cars during the period. BMW and other European brands also saw their sales either stagnate or decrease. As a result, their combined U.S. market share fell to 8.4 percent from 9.2 percent in 2015.

"Hyundai and Kia have been performing well since the beginning of 2016 as they aggressively introduced a series of new sedans and SUVs," an automobile industry analyst said. "Throughout the year, both automakers plan to launch more new models, including Hyundai's first premium brand sedan, the G90, which will attract keen attention from U.S. motorists."

However, European brands have lost their luster among U.S. consumers after Volkswagen's emission-cheating fiasco, the analyst said.

"Many U.S. motorists lost faith in European brands, making it difficult for Europe-based automakers to pitch for their vehicles," he said. "If the current trend continues, Hyundai and Kia will soon be able to sell more cars than 17 European brands combined."

Meanwhile, Hyundai's Tucson SUV, and i10 and i30 compact cars were among the top 10 best-sellers in Germany.

According to the German Association of the Automotive Industry, Hyundai sold 2,116 all-new Tucson SUVs in Europe's largest automobile market in February, the third highest after Nissan's Qashqai SUV (2,345) and the Fiat 500 compact (2,214).

Hyundai also sold 1,526 i10s in Germany for fifth place, while its i30 came in ninth (1,470). The automaker's overall sales in Germany rose 11 percent to 7,279.

"The German market is mostly dominated by Volkswagen, BMW, Mercedes-Benz and other home-grown carmakers," a Hyundai Motor official said. "Given that, it's quite encouraging to see our cars have been well received by German motorists. We believe that Hyundai vehicles will perform better in other European markets."