Despite a cooling U.S. electric vehicle market, Hyundai Motor Group has solidified its position as the leading alternative to Tesla. While the industry saw its first annual decline in ten years, Hyundai and Kia’s combined performance propelled them to a dominant second-place finish, outperforming domestic giants like Ford and GM in the race for electrification.
Hyundai-Kia: The Powerhouse Behind the Numbers
According to recent data from Cox Automotive, Hyundai Motor Group (Hyundai and Kia combined) sold 99,553 electric vehicles last year. This performance secured their rank as the No. 2 EV seller in the United States, trailing only Tesla.+1
- Hyundai Performance: Driven by the award-winning IONIQ 5, Hyundai sold 65,717 units. The IONIQ 5 remains a top-5 best-selling EV in America.+1
- Kia Performance: Supported by the flagship EV9 and the EV6, Kia contributed 33,836 units to the group’s total.
- Market Standing: As individual brands, Hyundai and Kia ranked 3rd and 8th respectively, showcasing a “pincer movement” strategy that captures both the mainstream and luxury SUV segments.
Navigating the “Tax Credit Cliff”
The overall U.S. EV market dipped 2%—from 1.30 million in 2024 to 1.27 million last year. This decline was largely triggered by the Trump administration’s termination of the $7,500 federal tax credit on September 30.+1
While the credit repeal caused a sharp Q4 drop across the industry, Hyundai’s strategy proved remarkably resilient. By utilizing aggressive lease incentives and “dealer cash” to offset the loss of federal subsidies, Hyundai managed to maintain sales momentum where others faltered.
The $26 Billion Bet: HMGMA and Localized Production
Hyundai is not retreating. To bypass future tariffs and stabilize supply, the group has accelerated its $26 billion investment in U.S. manufacturing.
- HMGMA (Metaplant America): The massive Georgia facility is now operational, producing the IONIQ 5 and the newly launched IONIQ 9 three-row SUV.
- Localized Battery Supply: A joint venture with LG Energy Solution is slated for completion in early 2026, ensuring that Hyundai vehicles meet local content requirements even under shifting trade policies.
- Hybrid Flexibility: Recognizing the current market volatility, Hyundai plans to integrate hybrid production into its Georgia plant by 2026 to ensure steady growth regardless of EV demand swings.
2026 Outlook: From Policy-Driven to Product-Driven
Experts suggest that while government subsidies once drove the market, the next phase will be won by brands offering superior tech and value. José Muñoz, CEO of Hyundai Motor America, recently emphasized that the company is transitioning into a “tech and mobility provider,” leveraging robotics (Boston Dynamics) and AI to redefine the driving experience.
“The market is resetting,” noted industry analysts. “Hyundai’s ability to pivot between high-performance EVs and record-breaking hybrids makes them the most prepared automaker for the current U.S. political and economic climate.”
