Hyundai Motor, Kia Motor: 2025 Sales Targets Within Reach After 2024 Miss

Hyundai Motor and Kia Motor, the South Korean automotive giants, have set their sights on a 2% increase in combined global sales for 2025, following a slight dip in 2024 sales. Despite missing their 2024 targets, the companies remain optimistic about their future prospects, driven by their strategic shift towards electric vehicles (EVs) and purpose-built vehicles (PBVs).

In 2024, Hyundai and Kia sold a combined 7.23 million vehicles, slipping from 2023 sales and falling short of their targets. Solid U.S. sales were offset by sluggish demand in Europe and their home market. However, the companies' focus on EVs and PBVs has contributed to their overall sales growth. Hyundai achieved an all-time high in annual sales, selling approximately 3.09 million units, while Kia sold approximately 3.08 million units in 2024.

Hyundai and Kia's strategic shift towards EVs and PBVs has been instrumental in their sales growth. The Hyundai Motor Group plans to introduce 23 EV models by 2025 or 2026, selling slightly more than 1 million units a year. Hyundai will sell 560,000 units of 12 models by 2025, while Kia will sell 500,000 units of 11 models by 2026. This focus on EVs has helped them maintain their sales momentum despite the sluggish demand for battery electric vehicles (BEVs) in the first quarter of 2024.

Hyundai and Kia's investments in research and development have also played a crucial role in their sales growth strategy. Hyundai plans to invest KRW 60.1 trillion over six years (2020-2025) to strengthen its position in the EV field, enter the Urban Air Mobility (UAM) market, and focus on autonomous driving, robotics, and fuel cells. Kia, on the other hand, plans to invest KRW 29 trillion over the same period to strengthen its existing fields and enter new businesses, with a focus on EVs and PBVs.

In conclusion, Hyundai Motor and Kia Motor have set their sights on a 2% increase in combined global sales for 2025, following a slight dip in 2024 sales. Their strategic shift towards EVs and PBVs, coupled with significant investments in research and development, has contributed to their overall sales growth. Despite missing their 2024 targets, the companies remain optimistic about their future prospects, driven by their commitment to innovation and adaptability in the face of changing market conditions.