Hyundai Motor Group slips to 9th in global EV rankings despite 20.4% delivery growth through August

Hyundai Motor Group grew its global electric vehicle deliveries by more than 20 percent in the first eight months of this year, but slipped one spot in the global top-10 rankings as Chinese upstart Leapmotor posted blistering growth.

According to SNE Research, Hyundai Motor Group delivered 499,500 electric vehicles — including battery EVs and plug-in hybrids — from January through August, up 20.4 percent from 414,800 units in the same period last year. That pace is more than three times the global average growth rate of 5.9 percent over the same period.

Despite the strong volume growth, Hyundai Motor Group's market-share ranking slipped from eighth to ninth. The group that displaced it was China's Leapmotor, which delivered 514,400 units in the first eight months of the year — a 69.3 percent jump that was the highest growth rate among the global top 10. Leapmotor's market share rose 1.4 percentage points to 3.7 percent, edging past Hyundai Motor Group's 3.6 percent.

Leapmotor's surge was driven by a 48.2 percent increase in domestic Chinese sales, compounded by European sales that grew to 5.5 times their year-earlier level through the Stellantis distribution network.

Hyundai Motor Group's performance varied sharply by region. North American deliveries fell 23.4 percent, weighing on overall results, while the group posted 18.5 percent growth in both Europe and Asian markets outside China. With the US electric vehicle tax credit having expired at the end of September last year, demand in North America has remained weak for nearly a year, and the group's shift toward European and emerging Asian markets has helped sustain its overall growth.

Globally, EV deliveries reached 13.725 million units in the first eight months of the year, up 5.9 percent year-on-year. Growth slowed noticeably in August, however, with the monthly increase coming in at just 1.8 percent, down sharply from 11.3 percent in July.

BYD held onto first place with 2.193 million deliveries, though that figure represented a 16.1 percent decline from a year earlier, hurt by a 33.6 percent drop in domestic Chinese sales. Its market share fell 4.2 percentage points to 16.0 percent from 20.2 percent. Second-place Geely and third-place Tesla posted modest gains of 2 percent and 8.3 percent, respectively. Other Chinese automakers — including SAIC, Changan and Chery — continued to record double-digit growth on the back of expanding exports.

By region, China remained the largest market with 7.502 million units but contracted 7.8 percent, with its share falling from 62.8 percent to 54.7 percent. Europe offset some of that weakness with 3.31 million units, up 29 percent, while Asia excluding China surged 77 percent to 1.301 million units. North America was the weakest major region, with 954,000 units representing a 24.9 percent decline.

SNE Research said China's decision to impose a 2 percent consumption tax on lithium-ion batteries starting in September, combined with the planned elimination of export VAT rebates on batteries from January next year, could push up battery costs and pass them on to vehicle prices. The research firm added that as Chinese automakers accelerate overseas expansion, local production capacity, the ability to supply affordable models, and the ability to navigate regional regulations will be the key competitive variables through the end of the year.