73,559 BEVs, up 61%. 24 385 PHEVs, up 35% Plug-ins in total: 97,944 (up 54%) 5,032 (down 2%), FCVs
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Summary
- The moment has come to give the first assessment of Hyundai’s brand-new high-end all-electric car platform, which was introduced in mid-late 2021.
- The combined Hyundai-Kia sales rate for these electric vehicles has reached 240,000 per year as of March 2022.
- With the addition of the Genesis edition this quarter, we can estimate to a yearly sales rate of about 300,000 copies.
- Less than a year was needed to complete this. From this kind of debut, it might be the fastest sales ramp in electric car history.
- How would you value an electric car franchise that went from 0 to 300,000 in a year and has a direct path to 2 million units from the standpoint of valuation?
One of the biggest manufacturers in the world, Hyundai (OTCPK:HYMTF), which also runs the Kia (OTCPK:KIMTF) and Genesis brands, is quickly coming up to market leaders Toyota (TM) and Volkswagen (OTCPK:VWAGY) in terms of volume (OTCPK:VLKAF). Despite having its major factories in Korea, the Hyundai Group also runs production facilities there as well as in Georgia, Alabama, India, and Turkey.
Although Hyundai and Kia have been selling electric vehicles for a while, commercial production of its own battery-electric vehicle (BEV) platform did not begin until 2021, and deliveries did not start until mid-late 2021. The first evaluation of Hyundai’s electric car initiative can now be made as the first quarter of 2022 is over and we have both the complete Q1 figures as well as the April month sales results from a few selected countries.
Hyundai’s BEV initiatives up to 2021 had mostly focused on the Hyundai IONIQ BEV, Hyundai KONA BEV, and Kia Niro BEV. Two of these relatively successful cars had good ranges of about 260 miles each. They weren’t regarded as aexcitinga in terms of design or other performance or other measures, and they were all front-wheel drive and had only a modest amount of horsepower.
It’s critical to realize that Hyundai-Kia is still working on some of these older BEV platforms and models. For instance, a new version of the Kia Niro BEV was recently debuted.
However, Hyundai-Kia-Genesis unveiled a brand-new generation BEV-only platform that has far faster charging times, better performance, and is producing vehicle variations that are bigger, faster, and more competent. There are initially three variations:
The tables below show that the Hyundai IONIQ 5 began selling outside of the United States in May 2021, the Kia EV6 in September 2021, and the Genesis GV60, which may already be available outside of the United States but is soon to be available in the U.S. market this quarter.
It is important to note the (lack of) complete similarities between the Hyundai, Kia, and Genesis variants in this era of cost-cutting and scale economies. Compare this to the Toyota-Subaru electric cars (OTCPK:FUJHF) (OTCPK:FUJHY), which are essentially the same vehicle with very minor visual modifications (grille, badge, etc.). Even a layperson will be able to recognize the vehicle right away.
The Hyundai-Kia-Genesis is an exception. These three vehicles don’t share a body because of the various differences in their dimensions, doors, interiors, and other features. This is true of everything, from wheelbase to typical heat pump type. Yes, the components of the electric drivetrain and basic electric architecture are identical or almost identical, but the average layperson would not be able to tell that they originate from the same platform. They appear entirely different.
Sales of Hyundai’s electric vehicles increased significantly in March.
11,447 units of Hyundai’s battery-electric vehicles were sold in March, an increase of 105% from the same month last year.
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Hyundai sold 313,926 automobiles worldwide in March of this year, 17% fewer than in March of last year. Sales have decreased by 9.8%, making them lower than in Q1 of 2021 as well. Sales of its all-electric vehicles, however, more than doubled from 2021 to today. 11,447 battery-powered vehicle sales were recorded, an increase of 105%. Additionally, the number of wholesale sales of plug-in electric vehicles rose to 14,693 units, a rise of 58% year over year, or 4.7% of the whole volume.
Sales of plug-in hybrid vehicles, however, decreased by 12%. Additionally, fewer hydrogen fuel-cell vehicles were sold. The company cited “unfavorable external circumstances, including continued component shortages, fluctuating raw material costs, and the revival of Covid-19” as the cause of the total sales loss.
In terms of EV sales in the United States, Hyundai and Kia are currently just behind Tesla.
Tesla is the market leader in several markets throughout the world, including the United States, and it only offers electric vehicles. Thanks to its two brands, Hyundai and Kia, the Hyundai Group presently holds the second spot in that nation. Automotive News reports that by the end of the decade, the Korean automaker hopes to control EV sales in the second-largest auto market globally.
It won’t be a simple task. Volkswagen is presently preparing its Chattanooga facility to manufacture the ID. BUZZ and the ID.4 in order to compete there with electric vehicles. The global supply issue that is impacting the automotive sectors, particularly when it comes to semiconductors, may also work in Hyundai and Kia’s favor. Automotive News claims that these businesses are better equipped to handle it.
Hyundai and Kia sold 15,414 EVs in the first quarter of the year despite having more vehicles available than Volkswagen or the Japanese manufacturers. In the same time frame, Tesla sold 113,882 electric vehicles, or nearly ten times the performance of Hyundai Group. Experian provided these figures to Automotive News.
Tesla, on the other hand, was able to maintain deliveries by incorporating some chips into their cars. Other than impressive sales figures, the practical outcome appears to be a recall that has so far affected 237,253 vehicles globally (129,960 in the U.S. and 107,293 in China). The ICE (Infotainment Central) of vehicles made in 2021 gets hot when being supercharged. The numbers for Europe are still pending, and they should also be quite high.
According to Automotive News, the “EV revolution” is still in its infancy, particularly in the United States. According to Cox Automotive, 174,068 electric vehicles were sold in the American market overall in Q1 2022. You can see how early that is by comparing it to the 3,309,520 total vehicles sold over the same time period.
Even so, the Hyundai Group is moving forward at top speed, investing in the E-GMP architecture that has already produced the Hyundai Ioniq 5, Kia EV6, and Genesis GV60 and is expected to produce additional vehicles such as the Hyundai Ioniq 6, Ioniq 7, Kia EV1, and EV9. The Integrated Modular Architecture, or IMA, part of the E-GMP progression, will advance considerably farther.
By 2023, Hyundai, Genesis, and Kia will each have 17 new EVs, while Kia will have 14 by 2027. By 20230, the Hyundai Group intends to sell 3.1 million electric vehicles, which may or may not be a good thing. Even though it was the only practical option 10 years ago, mixing nickel and cobalt is not a good idea, claims ONE (Our Next Energy). That is likely the reason why Japanese corporations like Toyota are not as interested in EVs: they want solid-state cells to be available before fully committing to electrification.
Hyundai and Ford are the front-runners in America’s second-place EV sales race.
It is inevitable that we will move toward all-electric vehicles. Today, the majority of major manufacturers offer at least one electric vehicle, and a race is on to catch Tesla, which currently has a commanding lead in the field. According to recent data, several businesses are vying for second place this year and each has a good chance of doing so.
According to sales figures for 2022, the Hyundai Group brands, which include Hyundai, Genesis, and Kia, are currently comfortably in second place. Through June, the group had transported about 34,518 EVs. With its Mustang Mach-E, F-150 Lightning, and E-Transit van in third place, Ford only had 11,539 more vehicles than Chevrolet.
Ivan Drury, senior manager of insights at Edmunds, claims in a recent Autonews article that the new Genesis GV60 and the Kia EV6 are all punching above their weight. They not only bring in new customers for the brand but also steal business from expensive businesses. We weren’t too surprised to learn that based on the results of our tests of the EV6 and the Ioniq 5.
The Blue Oval has the potential to surpass the Korean brands if it can ramp up production properly, and Ford’s EV sales in the first half of the year are up 77% from a year earlier. The current demand for the F-150 Lightning is extremely difficult to supply, as we have often noted. The Lightning is attracting buyers from different brands and market areas, just like the aforementioned vehicles.
Whatever the conflict between these two automakers, they won’t be by themselves for very long. With recent introductions like the Cadillac Lyriq and the GMC Hummer EV, General Motors is well on its way to filling a larger portion of the EV market. These cars join the already-available Chevrolet Bolt EV and EUV.
Also keep in mind that the Equinox EV, Silverado EV, and Blazer EV are all anticipated to go into production soon. Although we are unable to predict with certainty who will prevail this year, we can state with certainty that the struggle appears to be just getting started and that the competition will only heat up in the years to come.
Tracking the phase-out of the federal EV tax credit by automaker
What will happen to the growth in EV sales when the US Federal EV tax credit phases out partially or totally for some automakers is a topic of interest for consumers, experts, electric vehicle activists, policymakers, and others. General Motors achieved the milestone in December 2018, while Tesla did so in July 2018.
Check back frequently as EVAdoption will update our Federal EV tax credit phase-out tracking several times year. We are currently revising the manufacturers’ sales projections through December 31, 2021.
According to our most recent projections, Toyota will be the next producer to cross the 200,000 tax credit phaseout level, most likely in Q1 2022. Nissan will likely follow Ford in selling 200,000 EVs in Q3 2022 after Toyota, but not until at least Q2 or Q3 of 2023.
With the introduction of new nameplates, global EV sales skyrocketed last year, which also helped parts manufacturers’ sales.
Hyundai Motor Co. and Kia Corp., the two biggest automakers in South Korea, came in fifth place for sales of electric vehicles, which increased by a factor of three last year.
In 2021, a total of 6.66 million electric vehicles—including plug-in hybrids—were sold globally, jumping 111% from the year before, according to the Korea Automobile Manufacturers Association (KAMA) on Tuesday.
EV sales growth surged as international automakers strengthened their electrified portfolios to match the rising demand for eco-friendly vehicles, going from an increase of 8.7% on-year in 2019 to an increase of 55.1% in 2020 and a double gain last year.
According to KAMA, the proportion of electric vehicles sold globally increased from 2.2% in 2019 to 3.9% in 2020 and 7.9% in 2021.
China has the largest EV market globally, accounting for 3.33 million units, or half of all EV sales worldwide. Europe came in second with 2.33 million vehicles, and North America came in third with 761,242 vehicles.
With 1.04 million units sold, Tesla Inc. was the top EV seller, with the Model 3 and the small crossover Model Y leading the way.
Following China’s BYD Co., which sold 595,089 vehicles, came Volkswagen in second place with 709,030 sales. Fourth-placed General Motors Co. had sales of 515,584 vehicles.
The two auto-producing divisions of the Hyundai Motor Group, Hyundai Motor and Kia, sold a combined 348,783 vehicles last year, an increase of 98.1% from the year before.
With the sales volume, the two sister companies’ combined EV market share increased by one spot to sixth, mostly due to the IONIQ 5 crossover and EV6 based on the conglomerate’s own Electric-Global Modular Platform by Hyundai and Kia (E-GMP).
Sales of auto parts producers have increased as electric vehicles are being used more widely around the world.
The company NVH Korea Inc., which produces materials used in automobiles to reduce noise and vibration, became a member of the “one trillion won revenue club” last year.
The company’s sales in 2021 increased by 11.4% to 1.07 trillion won ($876 million), according to regulatory records. To 42.8 billion won, operating profit more than doubled.
Hyundai Motor and Kia depend heavily on NVH Korea, a manufacturer of sound-absorbing parts like headlining, in-car floor carpets, and sound insulation materials.
The premium Genesis G80, GV70, and GV80 models, which are offered internationally, are among the vehicles made by the two automakers for which NVH Korea provides half of the noise-reduction components.
Chairman and Chief Executive Officer of NVH Korea Koo Jakyum stated, “We anticipate receiving orders for new Hyundai and Kia models that are currently in development.
In recent years, the business also started producing battery module packs for the IONIQ 5 and five additional electric vehicles (EVs) for Hyundai Mobis Co., a division of the Hyundai Motor Group that manufactures auto parts.
Insan Corp. and Woochang Industries Co. later joined forces with NVH Korea, which had originally been founded in 1984 as Ilyang Industries Co., to create an industry leader in car parts.