Hyundai Motor, Kia top 500,000 US sales in a quarter for the first time as hybrid demand surges

Hyundai Motor and Kia surpassed 500,000 combined US sales in a single quarter for the first time, as a surge in hybrid demand more than offset a steep drop in electric vehicle sales. Strong SUV performance added to the momentum, pushing the two automakers to a record third-quarter result.

Combined US sales for the third quarter reached 506,200 units, up 5.4 percent from the same period last year, the companies said Friday. It marked the first time Hyundai Motor and Kia had exceeded 500,000 units in a single quarter in the US market.

Hyundai Motor, including Genesis, sold 269,541 units, a 3.5 percent increase, while Kia posted 236,659 units, up 7.8 percent. Genesis alone sold 22,645 units, a 5.5 percent gain year on year. All three brands — Hyundai Motor, Kia and Genesis — set quarterly sales records.

Among automakers that have reported results, General Motors led with 669,961 units, followed by Toyota at 633,224 units and Hyundai Motor and Kia combined at 506,200 units.

Hybrid vehicles drove the record performance. Hyundai Motor and Kia sold a combined 138,112 hybrid units in the third quarter, up 53.4 percent from a year earlier and the highest quarterly figure on record.

Hyundai Motor's hybrid sales rose 36.0 percent to 69,776 units, while Kia's jumped 77.0 percent to 68,336 units. The gap between the two brands in hybrid sales stood at just 1,440 units.

Electric vehicle sales, by contrast, fell sharply. Combined EV sales for the quarter came to 22,311 units, down 51.0 percent from a year earlier. Hyundai Motor's EV sales dropped 57.7 percent to 12,713 units, while Kia's fell 37.7 percent to 9,598 units.

Despite the EV decline, the hybrid surge lifted combined electrified vehicle sales — hybrids and EVs together — 18.4 percent to 160,423 units. Electrified vehicles accounted for 31.6 percent of total sales, with hybrids making up more than 86 percent of that electrified total.

By model, SUVs led the way. The Tucson was Hyundai Motor's top-selling model in the quarter at 64,075 units, followed by the Elantra at 48,764 units and the Santa Fe at 39,112 units.

At Kia, the Sportage topped sales with 50,839 units. The K4 came in second at 37,633 units, followed by the Telluride — a locally produced strategic model — at 36,436 units.

September sales also continued the upward trend. Hyundai Motor and Kia sold a combined 162,511 units in the US last month, up 13.4 percent from September last year.

Hyundai Motor, including Genesis, sold 85,502 units, up 9.8 percent from the same month last year. Kia posted 77,009 units, up 17.6 percent.

The Tucson led Hyundai Motor's September performance with 23,164 units, up 31.8 percent year on year — approaching the brand's all-time monthly record of 23,762 units set in November last year, even as a full model change looms. The Santa Fe sold 12,227 units and the Palisade 10,327 units, with Palisade sales jumping 52.1 percent.

Genesis sold 8,063 units in September, surpassing the 8,000-unit monthly threshold for the first time this year and setting a new monthly sales record for the brand. The GV70 accounted for 3,095 units and the GV80 for 2,734 units.

At Kia, the Sportage led with 16,033 units, followed by the K4 at 12,658 units and the Telluride at 11,927 units. The Telluride posted a 41.9 percent year-on-year gain, while the Sorento sold 8,939 units, up 37.5 percent. The EV3, a compact electric SUV that recently went on sale in the US, moved 514 units in its first month.

The divergence between hybrid and EV sales was equally pronounced in September. Hybrid sales rose 61.6 percent year on year to 44,328 units, while EV sales fell 57.0 percent to 7,423 units. Combined electrified vehicle sales climbed 15.8 percent to 51,751 units, representing 31.8 percent of total monthly sales.

Kia's September hybrid sales jumped 92.1 percent to 22,394 units, while Hyundai Motor's rose 39.0 percent to 21,934 units. The results underscore how the two automakers are sustaining sales growth in the US market — where EV demand has continued to slow — by leaning on hybrids and SUVs.

"Our SUV, sedan and hybrid lineup drove broad-based growth, delivering record September and third-quarter results," said Randy Parker, CEO of Hyundai Motor North America.

Eric Watson, vice president of sales at Kia America, said the record September and quarterly figures "once again demonstrate the strength of Kia's brand and product competitiveness, as well as our solid dealer network."