Hyundai and Kia Experience 3% Growth in Eco-Friendly Vehicle Exports

Synopsis

Hyundai and Kia reported a 3% increase in their eco-friendly vehicle exports in 2024, totaling 707,853 units. This growth occurred despite economic challenges, with a focus on enhancing gasoline hybrid models due to reduced demand for EVs. The companies continue to adapt their strategies amid global uncertainties.

Key Takeaways

Combined eco-friendly vehicle exports rose by 3% in 2024.
Gasoline hybrids constituted 56% of shipments.
Plans to introduce more fuel-efficient models.
North America accounted for 56% of shipments.
Record investment of 24.3 trillion won in South Korea planned for this year.

Seoul, Jan 14 (NationPress) Hyundai Motor and its affiliate Kia announced on Tuesday that their total exports of eco-friendly vehicles increased by 3 percent in 2024 compared to the previous year, despite an economic downturn.

Hyundai and Kia exported a combined total of 707,853 environmentally friendly cars last year, a rise from 687,420 units in the prior year, as stated in a press release from Hyundai Motor Group.

Models featuring gasoline hybrid technology represented 56 percent of these eco-friendly shipments, effectively balancing the decreased demand for electric vehicles (EVs), as reported by the Onhap news agency.

In response to the slowdown in EV demand, both manufacturers plan to enhance their product offerings by introducing more fuel-efficient gasoline hybrid models.

They also intend to refine their product assortment and modify vehicle production and inventories due to high interest rates, sluggish growth, rising protectionism, and intensified competition this year.

Together, Hyundai and Kia constitute the world’s third-largest automotive group by sales, following Toyota Motor and Volkswagen AG.

Overall exports saw a slight dip to 2,180,698 units valued at US$53.36 billion last year, down from 2,216,231 vehicles worth $54.39 billion in 2023, according to the release.

Among the exported models, seven out of ten were sport utility vehicles (SUVs), with the Avante compact, known as Elantra in international markets, being the top seller.

Approximately 56 percent of shipments were directed towards North American markets, while 19 percent were sent to Europe, with the rest distributed to other regions.

In addition, Hyundai Motor Group has committed to a record investment of 24.3 trillion won ($16.6 billion) in South Korea this year to enhance future competitiveness amid unpredictable global market conditions.

This yearly investment strategy signifies a greater than 19 percent increase compared to last year’s domestic investment of 20.4 trillion won, as per the group’s announcement.

The decision underscores the belief that stable, ongoing investment is essential for navigating rising uncertainties and securing growth opportunities for the future, the group emphasized.