South Korean legacy automaker Hyundai, through its American arm, is going “all in” on electric vehicle uptake. Now, the Hyundai US boss is calling out the competition, including hybrid vehicle proponents Toyota and General Motors, among others.
Hyundai commits to EVs while others retreat
Hyundai US Chief Executive Randy Parker emphasized the absurdity of the idea of buying an electric vehicle model from companies that oppose the technology, such as Japan’s Toyota and America’s GM, etc.
“Why would anybody want to purchase an EV from an [automaker like Toyota or GM] who’s lobbying against EVs?”
Hyundai US Chief Executive Randy Parker (via The Electric)
Hyundai Motor Group, including the Kia and Genesis brands, successfully overthrew American legacy automakers Ford and GM in EV sales in the US last year. It sold almost 40,000 EVs in 2023, putting it behind the Musk-led company.
While Hyundai seeks to further boost its EV strategy, American brands and several others are scaling back on their electrification plans due to “slower than expected demand.”
“If a person is thinking about buying an EV, I think you want to go to a company who is fully committed to selling EVs in the United States.”
Hyundai US Chief Executive Randy Parker
CEO Parker’s remarks are undoubtedly daring as the South Korean automaker intensifies its EV push.
Hyundai to beat rivals with innovative models
Hyundai currently markets three of the cheapest electric cars in the US: the IONIQ 5, IONIQ 6, and Kona Electric.
The Hyundai IONIQ 5 advanced as the sixth top-selling electric vehicle in the county last year, with sales hitting almost 34,000 units. It also achieved a new sales record in March, propelling EV sales up 100%.
Hyundai attempts to beat out the competition with these affordable yet competitive EV models. The upgraded 2024 Hyundai Kona now offers a longer driving range, faster charging speed, and a sleeker new design for only below $33,000.
Meanwhile, the IONIQ 6 is among the cheapest models to lease in the US regardless of powertrain. In effect, its sales surged 79.4% through the first quarter of the year.
Boston Consulting Group’s recent study even claims that the IONIQ 6 was the sole EV model that met prospective buyers’ preferences when it comes to driving range, charging, and price targets. The Tesla Model 3 electric sedan follows behind.
.
US investments
Hyundai seeks to maintain its momentum in the US market. It accelerated the development of its inaugural electric vehicle and battery factory in the country.
In fact, Georgia earmarked February 26, 2024, to the South Korean automaker and called it “Hyundai Day.” It is a gesture of appreciation for the company, which invested billions of dollars and generated thousands of job positions for the citizens. Center for Automotive Research estimates that Hyundai’s investments in the US reached a total of more than $12.6 billion and opened 50,000 new job opportunities.
Hyundai initially expected the new factory to kick off production in 2025. However, it adjusted the timeline to Q4 2024 in order to gain eligibility for federal tax credits of up to $7,500.
Other brands’ move to scale back on their electrification plans could enable Hyundai to steal market share in the US. It would be unsurprising, considering that its three-row electric SUV is already gaining substantial demand among American buyers.
