Hyundai, Kia score solid Q2 sales in U.S. despite CDK speed-bump

Author

Colin Velez
July 02, 2024

Hyundai and Kia saw North American sales decline in June, ending an otherwise strong quarter on a disappointing note.

What this means: Although automakers and dealers are likely to make up for lost time this month, these sales reports do shed light on the possible impact of the CDK Global cyberattack. Hyundai and Kia have seen rapid and steady growth in the U.S. for multiple years. If they were held back from beating their prior-year numbers, then it’s likely the case for many other brands.

By the numbers

  • Hyundai’s American sales dropped 2.5% year-over-year in June, while Kia’s slipped 6.5%. Hyundai’s luxury brand, Genesis, reported a sales decline of 6.4%.

  • Nevertheless, Hyundai still finished the second quarter ahead of last year, selling 214,719 units between April and June, an increase of 2.2%.

  • Hyundai is also performing better on a year-to-date basis, although its lead over 2023 shrank from 2% in May to 1.2% last month.

Outside of the U.S., Hyundai is struggling to keep up its pace from last year. The company reported global sales of 351,516 units for June, a decline of 6.3% from 2023. Inside South Korea, the company’s sales dropped sharply last month, declining 14.8% year-over-year, but shrank only 4.4% across all other regions. 

Top sellers: Demand for some of Hyundai’s most popular vehicles, including the Tucson, Santa Fe and Elantra, declined sharply from last year. This was offset by a surge in sales for other models, such as Palisade, which improved 57% year-over-year, and the Sonata, up 55%. Sales of hybrids and electric vehicles were especially strong, with the Elantra HEV and Ioniq 5 setting new monthly records.

Bottom line: Hyundai’s performance in the U.S. was strong throughout June, apparently suffering only a minor setback from CDK Global's cyberattack. Outside of North America, however, the brand is struggling to defend its market share, as competition from overseas competitors continues to ramp up.

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