Hyundai faces challenges in EV market despite year's successes

Coming off a successful second quarter, Hyundai is confident that demand will continue to grow for its electric vehicle lineup…but not without an uphill battle against competing brands.

Hyundai CEO’s EV forecast

• Speaking to Automotive News, Hyundai U.S. CEO said the company felt “bullish” about its EV lineup’s performance throughout the remainder of 2024, but felt the coming months would also be “tough.”

• EVs accounted for an impressive 7.3% of the brand’s sales from January through June, and, in May, Hyundai owned 11.2% of the total electric car market. However, while its recent growth has accelerated, the company’s EV lineup still lags behind other brands on a year-to-date basis, representing just 5.4% of the market.

• For Parker, pricing and affordability are the most likely factors to disrupt Hyundai’s EV sales growth, in addition to consumer range anxiety and inadequate charging infrastructure. However, he promised the automaker was “ready to take on the challenge.”

Questions raised: Hyundai’s EV sales count, while still impressive, has also been called into question, not by competitors but by its own dealers. Several Illinois retailers are now suing the automaker, alleging that it encouraged franchises to artificially boost electric car sales numbers. According to the lawsuit, dealers were encouraged to inflate their EV sales by using inventory codes meant for loaner vehicles. Those who acquiesced would receive special discounts and extra inventory while those who refused were supposedly denied benefits.

It is worth noting that the plaintiff in this case, Napleton Aurora Imports, has a history of litigation with Hyundai, stemming from an alleged sexual battery at one of its storefronts. The company also levied similar accusations against Chrysler, settling its dispute for an undisclosed amount in 2019. Nevertheless, the suit raises questions about the brand’s data at a critical time for its image.

Bottom line: While Hyundai may feel that the world is its oyster, it still has many challenges to overcome on its way to being a major player in the EV market. With prices continuing to fall across most electric models, litigation may be the least of its worries.

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