Volkswagen and GM Outperform Hyundai Motor Group in EV Sales in China

Among Hyundai Motor Group’s electric vehicle (EV) models, only the Niro ranked 18th in the world's top 20 best-selling EV models in January 2021, said global EV market research company EV Sales on March 14.

The first place was taken by the Wuling Hong Guang Mini EV of SAIC-GM-Wuling Automobile, which sold 36,762 units. The second and third places went to Tesla's Model 3 and Model Y, respectively, which sold 21,589 units and 9,597. Chinese companies swept fourth to ninth places on the list.

The Kona EV which ranked fifth in overall sales in 2020 disappeared from the list, probably due to a series of fires.

Analysts say the lackluster performance of Hyundai Motor Co. and Kia Corp. in EV sales this year is attributable to their sluggish sales in the Chinese market, which account for about 40 percent of the global EV market.

U.S. and European companies such as Tesla and BMW as well as Chinese EV companies rely on China for a large proportion of their EV sales. The top-ranked Wuling Hong Guang Mini EV relied on China for 100 percent of its sales. The second-ranked Tesla Model 3 also posted 64 percent (13,843 units) of its sales in China.

In 2020, 2,943,172 EVs were sold in the world, with China accounting for 1,206,610 units, more than 40 percent of the total, according to the Korea Automobile Manufacturers Association.

Hyundai Motor Group, which is competing with Tesla and Volkswagen and GM, is seeing its gap with the competitors widening. Volkswagen and Hyundai Motor Group sold 123,152 units and 124,114 EVs in 2019, respectively, according to the Korea Automobile Manufacturers Association. But in 2020, the gap widened as Volkswagen sold 381,406 units against Hyundai Motor Group’s 198,487 units. GM also sold 222,116 units in 2020, surpassing Hyundai Motor Group, even though GM posted 94,889 units in 2019. Swiss investment bank UBS recently released an analysis that the global EV market will be reorganized into a two-runner race between Tesla and Volkswagen in 2025.

The problem is that Hyundai Motor Group’s sales slump in China shows no signs of recovery. Although the group is planning to release its exclusive EV IONIQ 5 under the brand INIQER in 2021, nobody can guarantee the success of the new model without a recovery of the brand value, analysts say.

This article is reproduced at www.businesskorea.co.kr