Hyundai, Kia post record March sales in U.S. ahead of auto import tariffs
SEOUL, April 2 (Yonhap) -- Hyundai Motor Co. and its affiliate Kia Corp. reported record-breaking performances in the United States last month, extending their growth streak for the sixth consecutive month ahead of impending U.S. auto import tariffs, according to the companies Wednesday.
Hyundai Motor's U.S. sales rose 13.1 percent on-year to 87,019 units last month, marking the best-ever performance in March and the company's second-highest monthly sales.
The automaker attributed the growth to strong demand for key models, with sales of the Tucson sport utility vehicle (SUV) surging 28 percent, while those of the Elantra sedan and the Santa Fe SUV both jumped 25 percent on-year.
Sales of the Palisade SUV also gained 20 percent, and those of the Ioniq 5 electric vehicle (EV) rose 17 percent.
Hyundai's first-quarter sales totaled 203,554 units, up 10.1 percent from a year earlier, setting a new quarterly record.
Kia also posted robust results, selling 78,540 units in March, up 13.1 percent from the same month last year. This also marked its best-ever March performance and the sixth straight month of on-year growth.
Popular models drove the growth, with sales of the Carnival minivan spiking 53 percent on-year, and those of the Telluride and the Sportage SUVs soaring 17 percent and 11 percent on-year, respectively.
Kia's first-quarter sales reached 198,850 units, up 10.7 percent from a year earlier to also mark the best first-quarter performance in the company's history.
The stellar sales announcement of the South Korean automakers comes amid the U.S. administration's plan to start collecting 25 percent tariffs on imported cars and auto parts Thursday (U.S. time), which is expected to shake up the global automotive industry.
U.S. President Donald Trump's administration has been imposing 25 percent tariffs on steel and aluminum imports since last month, and plans to announce "reciprocal" tariffs this week to match what other countries levy on American exports.
Hyundai Motor America (HMA) has already notified its U.S. dealers of potential vehicle price increases.
In a recent memo sent to U.S. car dealerships, Randy Parker, chief executive officer (CEO) of HMA, stated that current vehicle pricing is not guaranteed and may change for wholesale, saying, "Tariffs are not easy."
Hyundai Motor Group has been bracing for challenges involving tariffs since Trump's reelection and has accelerated efforts to ramp up local production in America, the group's single-largest national market.
In a press conference at the White House last week, the group pledged a US$21 billion investment in the U.S. over the next four years and committed to expanding local production.
odissy@yna.co.kr
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