Hyundai-Kia Shatters January Sales Record in U.S. Market as Hybrid Demand Soars, EVs Stumble
Defying recent trade tensions and shifting consumer preferences, Hyundai Motor Group (HMG) has driven to a historic sales peak in the United States. The South Korean auto giant, encompassing Hyundai, Kia, and the Genesis brand, reported delivering 125,296 vehicles in January—a 7.7% increase year-over-year and a new benchmark for the month.
The standout story is the dramatic divergence between powertrains. Hybrid model sales skyrocketed 66% to 27,489 units, capitalizing on robust demand for fuel-efficient SUVs. In stark contrast, sales of battery-electric vehicles (BEVs) fell 34% to 4,471 units. Industry analysts point directly to the September 2023 revision of the Inflation Reduction Act (IRA), which disqualified several Hyundai-Kia EVs from federal tax incentives, as a key factor cooling consumer enthusiasm.
Kia led the group's charge with a 13% sales jump to 64,502 units. The Sportage SUV remained its top seller (13,984 units, up 23%), with the Carnival MPV posting a remarkable 60% gain. Hyundai Motor, including Genesis, saw a more modest 2.4% rise to 60,794 units, buoyed by strong performances from the Palisade and Kona SUVs.
Market Impact & Analysis: This sales record underscores the group's successful pivot toward hybrids as a bridge technology amid uncertain EV policy and infrastructure growth. It also highlights the immediate market sensitivity to federal incentives, raising questions about the near-term trajectory for EV adoption without such support. The performance solidifies HMG's position as a formidable player in the crucial U.S. market, even amidst ongoing import tariffs.
Reader Reactions
Michael R., Auto Industry Analyst in Detroit: "This isn't a surprise. It's a textbook case of consumer rationality. When the $7,500 incentive vanished overnight for these EVs, the calculus changed. The hybrid surge shows buyers still want efficiency but are prioritizing cost and convenience over pure electrification for now."
Priya Chen, Software Engineer & EV Advocate in Austin: "It's incredibly frustrating. We're taking one step forward, two steps back on climate goals. The policy whiplash is killing momentum for EVs. This sales report should be a wake-up call to lawmakers about the need for stable, long-term incentives."
David L., Retail Manager & Kia Owner in Ohio: "Just traded in my old sedan for a Sorento Hybrid. The math was simple: great mileage, no range anxiety, and a lower sticker price than the equivalent EV. For my family, it was the perfect practical choice right now."
This article is based on reporting from Just Auto, a GlobalData brand.
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