Hyundai Motor Group tops Ford for 2nd straight month in US, hits record 12.9% share

Hyundai Motor Group outsold Ford in the United States for the second consecutive month, claiming third place in monthly market share in both July and August. The group's August share of 12.9 percent was the highest ever recorded, driven by a surge in hybrid vehicle sales that is also rapidly closing the gap with Ford in year-to-date standings.

According to market research firm Omdia and industry data, Hyundai Motor and Kia ranked third in the US new-vehicle market in July and August, trailing only General Motors and Toyota.

In July, the two brands combined to sell 165,284 vehicles, up 5.0 percent from a year earlier, capturing a 12.1 percent share — behind GM at 16.7 percent and Toyota at 15.9 percent. Ford slipped one spot to 12.0 percent.

The gap widened further in August. While overall US new-vehicle sales fell 5.8 percent from a year earlier, Hyundai Motor and Kia held up relatively well, with combined sales of 178,405 units — a decline of just 0.6 percent.

Their market share rose to 12.9 percent, surpassing the previous record of 12.2 percent set in August last year.

The margin over Ford also expanded. In July, Hyundai Motor and Kia outsold Ford by 1,751 units, a lead of 0.1 percentage point in share. By August, the sales gap had grown to 14,042 units and the share difference widened to 1.0 percentage point.

The two brands are also closing in on Ford in cumulative terms. From January through August, Hyundai Motor and Kia sold about 1.26 million vehicles in the US, for an 11.8 percent share. Ford sold about 1.30 million units for a 12.2 percent share.

The cumulative share gap has narrowed steadily — from 0.6 percentage point at the end of the first half, to 0.5 percentage point through July, to 0.4 percentage point through August. For all of last year, Hyundai Motor and Kia's combined US share stood at a then-record 11.3 percent.

Competition with Ford is also intensifying in the third quarter. Hyundai Motor and Kia sold 343,689 vehicles in July and August combined, outpacing Ford's 327,896 units by roughly 15,800.

The market is watching closely to see whether Hyundai Motor Group can hold third place for the full third quarter. Cox Automotive projections cited by CNBC and Bloomberg estimated Hyundai Motor Group's third-quarter US sales at 511,421 vehicles against Ford's 504,172. The final quarterly ranking will be determined once September sales figures are confirmed.

Hybrid vehicles have been the key driver of Hyundai Motor and Kia's gains.

From January through August, about 1.66 million hybrid vehicles were sold in the US, up 20.7 percent from the same period last year — the only major powertrain category to post a sales increase.

By contrast, internal combustion engine vehicle sales fell 2.9 percent to about 8.24 million units, while electric vehicle sales dropped 26.8 percent to 648,350 units. Analysts attributed the shift to the expiration of EV tax credits and rising fuel prices, which have steered consumers toward hybrids.

Hyundai Motor and Kia have ridden that wave. In August, the two brands' combined US hybrid sales exceeded 50,000 units for the first time, reaching 50,057. Hyundai Motor sold 25,109 hybrids, up 33 percent from a year earlier, while Kia sold 24,948, up 65.7 percent.

Hyundai Motor Group is responding to the shifting US market by maintaining a broad lineup spanning internal combustion, hybrid and electric vehicles — a strategy that has proved advantageous as EV market growth slows.

Meanwhile, Hyundai Motor plans to unveil the fifth-generation Tucson — a top-selling model in the US — at a world premiere in New York on Thursday. The outgoing model sold more than 230,000 units in the US last year, and the new version is expected to further boost the brand's sales in the market.