Hyundai Faces Struggles as Global Sales Drop, EV Sector Takes a Hit
Hyundai Motor Company has been facing a challenging period, with global vehicle sales, including those of Hyundai and Genesis brands, dropping by over 6% year-over-year in June. The month’s total sales of 351,516 units dragged the first half of the year down by 0.9% when compared to the same period last year. Despite robust sales in the U.S., Hyundai’s electric vehicle (EV) sector witnessed a significant decline globally.
EV Sales Slump amid a Growing Market
The South Korean manufacturer saw an alarming drop in sales of all-electric and plug-in hybrid cars. June marked the eighth consecutive month of year-over-year decline. This slump comes even as the global EV market witnesses expansion, albeit unevenly, propelled by high interest rates and fierce competition from Chinese brands in certain markets.
A 30% Drop in Hyundai’s EV Sales
Hyundai’s EV sales fell by a staggering 30% in the first half of 2024. All major Hyundai electric cars experienced a downturn. In a bid to reverse this trend, the company plans to introduce the upcoming affordable Inster (also known as Casper EV) model.
Declining Wholesale Shipments
In June, the combined wholesale shipments for Hyundai and Genesis plug-in vehicles—closely tied to production—came to 21,028 units, marking a 34% year-over-year decline. This figure encompasses both South Korean retail sales and overseas sales from the manufacturer level (all data is unaudited and preliminary). This volume represents about 6.0% of Hyundai’s total sales, down from 8.5% the previous year.
The wholesale volume of all-electric vehicles dropped 34% to 17,217 units, inclusive of 16,193 from Hyundai (down 34% year-over-year) and 1,024 from Genesis (down 33% year-over-year). Interestingly, Hyundai reported that global all-electric car sales surpassed 18,000 units, which is slightly above the wholesale figures.
Plug-in hybrid car sales saw a similar decline, reducing by 34% to 3,811 units year-over-year. In addition, hydrogen fuel cell vehicle (FCV) sales have been dropping for 15 straight months, with no exports recorded for the past two months.
Detailed Breakdown of Plug-in Sales
- BEVs: 17,217 units (down 34%) with a 4.9% share.
- Hyundai BEVs: 16,193 units (down 34%).
- Genesis BEVs: 1,024 units (down 33%).
- PHEVs (Hyundai): 3,811 units (down 34%) with a 1.1% share.
- Total plug-ins: 21,028 units (down 34%) with a 6% share.
- FCVs (Hyundai): 294 units (down 5%) with a 0.1% share.
For the year so far, plug-in electric car wholesale shipments totaled 122,120 units, down 30% year-over-year.
Year-to-Date Wholesale Plug-in Car Sales
- BEVs: 102,182 units (down 30%) with a 5% share.
- Hyundai BEVs: 96,742 units (down 28%).
- Genesis BEVs: 5,440 units (down 53%).
- PHEVs (Hyundai): 19,938 units (down 30%) with a 1% share.
- Total plug-ins: 122,120 units (down 30%) with a 5.9% share.
- FCVs (Hyundai): 1,472 units (down 53%) with a 0.1% share.
In 2023, plug-in electric car wholesale shipments exceeded 309,000 units, marking a 29% increase from 2022, with all-electric car volume nearing 260,000 units (a 33% year-over-year increase), representing 6.2% of the total volume. Interestingly, in the U.S., Hyundai’s all-electric car sales increased by 52% year-over-year during the first half of 2024.
Hyundai Brand Analysis
June saw a 30% year-over-year decline in the wholesale shipments of E-GMP-based models, such as the Hyundai Ioniq 5, performance-oriented Ioniq 5 N, Ioniq 6, and Genesis GV60. This marked the tenth consecutive month of year-over-year decline.
All top-selling all-electric Hyundai models—the Ioniq 5, Kona Electric, and Ioniq 6—saw decreased sales in the first half of the year. Notably, the Ioniq 6 suffered a massive 62% year-over-year drop.
Hyundai plans to roll out an all-new, affordable EV—the Hyundai Inster (Casper EV in South Korea). Unveiled at the 2024 Busan International Mobility Show, this A-segment sub-compact EV is expected to significantly improve Hyundai’s EV sales.
Genesis Brand Challenges
The electrification of the Genesis brand continues to face hurdles globally. In June, wholesale shipments amounted to 1,024 units, a 33% year-over-year decline. Year-to-date, the brand saw a total of 5,440 units, down by 53% year-over-year.
Conclusion
Hyundai Motor Company is going through a turbulent period, facing declining sales in both traditional and electric vehicles. While the company sees potential in its upcoming affordable EV models like the Hyundai Inster, it has a challenging road ahead to regain its footing in the highly competitive EV market. For more in-depth automotive news and insights, follow us on Twitter @automotivefyi or email us at tips@automotive.fyi.
William Kouch, Editor of Automotive.fyi
18 Comments
Wow, I didnt expect Hyundai to do so bad in EV sales. They need to step up their game quick!
Yea man, EVs are the future and they cant fall behind like this.
I knew them EVs from Hyundai wouldnt cut it. They shoulda stuck with gas cars, those is way better!
Hyundai, trying to sell more electric cars and failing, lol. Guess they should just give up and start making flying cars instead.
What does BEV and PHEV even mean? This article just gives me a headache with all these numbers!
Wow a 34% drop. Maybe they should start giving the cars away for free, then they can increase sales!
Wow! Hyundai droppin like a rock huh? Maybe they should just stick to gas carz lol!
it’s obvious china brands are better. hyundai can’t compete, they just losing money now.
The data shows how EVs are still struggling despite market growth. Interesting figures.
Yeah, but do they even care about the environment or just profits??
Oh wow, another ‘affordable EV’. Just what we needed, more cars no one can afford.
Lol so true! These ‘cheap’ EVs are still outta my budget!
Hyundai’s EV sales drop 30%? I guess they should start selling bicycles instead, much easier!
Wow, Hyundai is really struggling! They better fix this EV problem quick or it’s over for them. I kinda like their cars too!
So Hyundai can’t sell cars now? What a joke! Maybe they should stick to making microwaves or something. LOL!!
This article clearly shows the issues in the EV market. Every car maker is having these problems. High interest rates are one big reason.
Hyundai sales down? No surprise! EV market is super tough. Chinese brands are eating their lunch. Good luck with that new Casper EV!
Oh no, Hyundai’s electric cars are failing! What a shocker… NOT! Maybe if they made better cars, they wouldn’t have this problem.