Hyundai and Kia electric vehicles sold twice in October... EV5 sales ‘soar’

Amid a recovery trend from the chasm (temporary stagnation in demand) in the global electric vehicle market, sales of exclusive electric vehicles from Hyundai Motors and Kia nearly doubled last month.

It appears that the expansion of the entry-level lineup and the subsidy effect go hand in hand.

According to Hyundai and Kia's corporate information (IR) on the 9th, a total of 3,617 units of the Hyundai Ioniq series were sold in Korea in October, a 68.8% increase compared to the same month last year (2,143 units). Compared to the previous month (2,567 units), it increased by 40.9%.

Kia EV series sales in October totaled 8,650 units, an increase of 110.1% compared to the same month last year (4,118 units) and an increase of 73.6% compared to the previous month (4,984 units).

October sales for the two brands combined totaled 12,267 units, an increase of 95.9% from the same month last year (6,261 units). This is a 62.5% increase compared to the previous month (7,551 units).

Cumulative sales of the IONIQ and EV series from January to October this year totaled 116,159 units, an increase of 77.1% compared to the same period last year (65,594 units).

By model, the increase in sales of Kia EV5 is most notable. EV5 sold 3,558 units in October, an increase of 209.4% compared to the same month last year.

EV9 (343 units) increased by 138.2% compared to the same month last year, and EV3 (3,124 units) increased by 119.5%. Sales of EV4 (950 units) also increased by 45.3% compared to the same month last year.

The number of Hyundai Ioniq 5 (1,903 units) increased by 71.6% compared to the same month last year, and the number of Ioniq 6 (615 units) and Ioniq 9 (1,099 units) increased by 67.6% and 64.8%, respectively.

This increase is interpreted to be due to the expansion of the entry-level lineup such as EV3 and EV4, and the government's recent plan to lower the upper limit of vehicle prices subject to 100% government subsidies from 53 million won to 50 million won in 2027, resulting in a surge in demand in October to purchase before the standards change. As a result, sales of entry-level electric vehicles in that price range appear to have increased.

As local government subsidies were quickly exhausted, shipments were accelerated, and manufacturers' own discount promotions also boosted sales.

This trend of electric vehicle growth is also confirmed in the global market.

According to SNE Research, an energy market research company, global deliveries of electric vehicles, including plug-in hybrid vehicles (PHEV), from January to September this year were 16.061 million units, up 5.8% from the same period last year.

The overall growth rate slowed as China, the world's largest market, decreased by 8.6% to 8.726 million units, but the market excluding China increased by 30.0% to 7.334 million units.

By vehicle type, pure electric vehicles (BEVs) increased by 13.6%, while PHEVs decreased by 10.4%.

By region, Europe increased by 32.2% to 3.954 million units, and Asia (excluding China) increased by 74.7% to 1.498 million units. Korea also increased by 69.4%.

In Europe, BEVs increased by 37.7% and PHEVs increased by 20.8%. By country, Germany recorded an increase of 42.1%, France 54.3%, and Italy 73.5%.

Starting this year, Germany is again providing subsidies for the purchase of electric vehicles for low- and middle-income households. The European electric vehicle market suffered a chasm due to a reduction in subsidies in 2024, but there is a clear recovery trend in major countries this year.

Meanwhile, Hyundai Motor Group's global electric vehicle deliveries (575,000 units) increased by 19.0%, exceeding the global market growth rate. Hyundai Motor Group's global market share also increased from 3.2% to 3.6%.

Accordingly, the key factor that will continue the growth of Hyundai Motor Group's electric vehicle sales in the future is expected to be the launch of new vehicles.

Vehicles using Hyundai Motor Company and Kia's first-generation electric vehicle platform were released in the following order: IONIQ 5 and EV6 (2021), IONIQ 6 (2022), and EV9 (2023).

Considering the typical vehicle model cycle, most of these models are entering the period of partial change or replacement with the next generation model.

As demand for electric vehicles shifts toward entry-level models, attention is being paid to whether future new car launches will be able to continue the rebound in electric vehicle sales.

A Hyundai Motor Group official said, “We will dominate the market based on the excellent marketability of Hyundai Motor Group’s exclusive electric vehicles along with the growth of global electric vehicles.”

Meanwhile, in the case of the domestic electric vehicle market, as the market encroachment of Chinese automobile brands is progressing at a rapid pace, policy support such as tax credits to solidify the foundation of the domestic automobile industry is also urgently needed.

According to the Korea Automotive Mobility Industry Association (KAMA) and the Korea Automobile Importers and Distributors Association (KAIDA), the number of newly registered Chinese passenger electric vehicles in Korea from January to September this year was 112,417, a 2.2-fold increase compared to the same period last year (51,535 units). The market share also increased by 8.4 percentage points to 43.5%.

On the other hand, the market share of domestically produced passenger electric vehicles recorded 48.7%, down 6.2 percentage points compared to the same period last year.