Hyundai Charges Ahead To Solidify Its EV Positioning Despite The Slowdown

Hyundai Motor Company HYMTF announced the launch of two new electric vehicles in Europe in an effort to boost its market share. The two new models, an affordable EV called the Inster EV,and a new IONIQ model, are key segment launches. While its rivals, including traditional automakers like General Motors GM and Ford Motor F, but also the EV king, Tesla Inc TSLA are scaling back their efforts, Hyundai is increasing its efforts to fight for leadership in the EV era. According to data from the Korean Automobile & Mobility Association, May already brought some sales records.

Affordable EVs Are In The Air

Last week, Hyundai provided a teaser of its low-cost EV for the first time, with the official debut of the Inster EV scheduled for the Busan International Mobility that is scheduled to kick off on June 27th. The Inster is key to Hyundai’s plan for EVs to account for at least 14 percent of its total sales in Europe this year. Volkswagen Group VWAGY also just finished design work on its affordable all-electric ID. 2. Volkswagen is expected to launch the ID.2. by the end of the year, while Hyundai’s Inster EV will make its official global debut before June ends and Tesla is only talking about working on a low-cost EV. With the looming debut of its entry-level EV, Volkswagen promised the ID.2. turned out even better than the concept. It will be will be one of ten new EVs that Volkswagen plans to launch by 2027. 

Hyundai Already Made A Record In May

In May, IONIQ 5 set a new monthly sales record with 4,449 units sold, bringing the cumulative total of the first five months of 2024 to nearly 15,000 units. Kia also made its own record as it sold 7,766 electric SUVs through May, while it also expects to gain the $7,500 tax credit and further boost demand. Later this year, Hyundai is opening its first EV and battery plant in the US and once it begins assembling the IONIQ 5, it should also have a contender to qualify for the tax credit.Already, the IONIQ 5 and IONIQ 6, are some of the most affordable and efficient EVs on the market, with the upcoming IONIQ yet to be unveiled.

Hyundai and Kia show South Korean automakers have what it takes for the EV race. 

Hyundai started off 2024 on a good note or more precisely, with a record start. In May, it sold more than 17,000 EVs across the globe. In the U.S., it is even challenging the EV king, Tesla. In May, Hyundai Motor Group that includes Kia, made 11.2% of the EV market in the U.S. By hitting double digits in market share, Hyundai and Kia are getting closer to close the gap with Tesla. While Tesla led by 52.9% last year, the gap fell to 40.5% through May this year as Hyundai continues to grow its market share. Although the fall of Tesla and its market share was bound to happen at some point, figures show that Hyundai and Kia are doing something right with their EV offerings and strategies.

DISCLAIMER: This content is for informational purposes only. It is not intended as investing advice.

This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.