Seoul - Hyundai Motor Group has solidified its position as the second-largest electric vehicle (EV) player in the U.S. market, despite the challenges posed by the U.S. Inflation Reduction Act (IRA) and its protectionist policies.
According to Yonhap News Agency, Hyundai Motor Co. held a 4.8 percent share of the U.S. EV market in the January-September period, while its affiliate Kia Corp. contributed an additional 2.7 percent. Together, they accounted for a combined market share of 7.5 percent, or 64,000 units, trailing only behind Tesla Inc., which led the market with a 57.4 percent share, or 489,000 units. Other major players included General Motors Co.'s Chevrolet brand with 5.9 percent and Ford Motor Co. with 5.5 percent.
The data indicated a significant increase in EV registrations in the U.S., which surged 61 percent year-on-year to 852,904 units in the first nine months. Automotive News projected that EV registrations in the U.S., a crucial automobile market globally, could exceed 1 million units for the first time this year if the current upward trend in EV sales continues.
Hyundai's notable market performance comes amidst the introduction of the U.S. Inflation Reduction Act, which offers tax credits of up to $7,500 for electric vehicles assembled in North America. This legislative change presents a challenge for Hyundai and Kia, as all of their EVs sold in the North American market are currently manufactured in South Korea, making them ineligible for these credits. However, Hyundai and Kia vehicles can still qualify for the support when used for commercial purposes, such as leasing, allowing the companies to maintain their competitive edge in the rapidly growing EV market.