Hyundai's electric car sales in 2024 have been a disaster

Summary

Hyundai's COO, Carlos Munoz, recently claimed that electric vehicles (EVs) are a growth driver for the company, despite infrastructure lagging behind technology. However, the reality is that Hyundai is struggling with declining EV sales, down 31% in the first four months of this year compared to 2023. The company's EV sales have fallen for six consecutive months worldwide, with a significant drop in the US due to lack of manufacturing and inability to take advantage of tax credits. Hyundai's market share of fully electric vehicles has plummeted from 88.2% last year to around 6%. Despite investing over $60 billion in EV production, Hyundai faces challenges in China and the US, and needs to focus on other markets like Europe and Southeast Asia to rebound.

Takeaways

• 🚗 Hyundai's COO, Carlos Munoz, claims that EV sales are a driver of growth for the company, despite contrary evidence.
• 📉 Hyundai is experiencing a significant downturn in EV sales, with a 31% drop in the first four months of the year compared to the same period in 2023.
• 💔 The company is reportedly losing money on each electric vehicle it sells, leading to a reluctance to produce as many EVs as they claim.
• 🌐 Hyundai's EV sales have fallen for six consecutive months worldwide, indicating a sustained trend rather than a temporary dip.
• 🇨🇳 Hyundai is struggling in the Chinese market, barely selling any cars there, and recently sold a $1.2 billion factory for a fraction of the cost.
• 🇺🇸 In the US, Hyundai is at a disadvantage because it does not manufacture EVs domestically and cannot take advantage of the $7,500 tax credit, leading to significant discounts to compete.
• 📊 Hyundai's share of fully electric vehicles as a percentage of total sales has plummeted from 88.2% to around 6% in the first four months of the year.
• 🚀 Competitors like Tesla and BYD are outperforming Hyundai in the EV market, with Tesla showing impressive growth despite a recent dip in sales.
• 🏭 Hyundai and Kia are planning to invest over $60 billion to increase EV production, aiming to boost sales in the future.
• 🚗 The Hyundai Ioniq 5 has seen a 25% drop in sales in April, and the Kona has declined by 28%, suggesting that even improved models are not immune to the downturn.
• 🌐 Hyundai's hydrogen-powered vehicle sales are also down, with the Nexo model experiencing a 64% drop in worldwide sales.

Q & A

What did Hyundai's COO claim about the company's EV sales?

Hyundai's COO, Carlos Munos, claimed that EV sales are a driver of growth for Hyundai and that the infrastructure is behind the technology, implying that when consumers are confident about infrastructure, EV sales will improve.

What is the actual situation regarding Hyundai's EV production and sales?

Contrary to the COO's claims, Hyundai is experiencing difficulties with EV production and sales, losing money on each electric car sold and thus not wanting to produce as many EVs as they might suggest.

How has Hyundai's EV sales trend been over the past six months?

Hyundai's EV sales have fallen for six straight months worldwide, with a 31% decrease in the first four months of the year compared to the same period in 2023.

What is the current market share of Hyundai's fully electric vehicles in their total sales?

Hyundai's fully electric vehicles now make up around 6.2% of the company's total sales, down from 8.4% a year ago.

How has Hyundai's performance been in the Chinese market?

Hyundai has struggled in the Chinese market, barely selling any cars there, and has recently sold a factory that cost them $1.2 billion to build for a fraction of that amount.

What is the impact of the lack of manufacturing in the US on Hyundai's EV sales there?

Because Hyundai does not manufacture EVs in the US, it cannot take advantage of the $7,500 tax credit, leading to the company having to sell EVs at a loss and not wanting to sell too many due to the financial impact.

How does Hyundai's current EV sales volume compare to other major manufacturers?

Hyundai has sold 66,000 electric vehicles worldwide in the first four months of the year, which is significantly less than other major manufacturers like Tesla and is not even close to being one of the world's top five largest electric vehicle manufacturers.

What is Hyundai's investment plan in response to the current EV market situation?

Hyundai, combined with Kia, plans to invest more than $60 billion into building more electric cars, indicating their intention to increase sales in the future.

How have specific Hyundai EV models performed in terms of sales?

Sales of the Hyundai Ioniq 5 have fallen by 14%, while the Kona EV sales have dropped significantly by 28%. The Nexo, Hyundai's hydrogen-powered vehicle, has seen a 64% decrease in sales worldwide.

What are some of the challenges Hyundai faces in the US market?

Hyundai faces challenges in the US market due to not manufacturing EVs there, which affects their ability to offer competitive pricing and take advantage of tax incentives, as well as the impact of new models like the Tesla Model 3 on their sales.

What does the speaker suggest as the main reason for Hyundai's struggling EV sales?

The speaker suggests that the main reason for Hyundai's struggling EV sales is the lack of manufacturing presence in the two largest car markets, the US and China, which limits their sales and growth potential.

Outlines

00:00

📉 Hyundai's Struggling EV Sales

Hyundai's COO, Carlos Munos, claimed that electric vehicles (EVs) are a growth driver for the company, despite infrastructure lagging behind technology. However, the reality is that Hyundai is facing significant challenges with its EV production and sales. The company has been losing money on each EV sold, leading to a reluctance to produce more than they publicly admit. Sales have dropped for six consecutive months, with a 31% decrease in the first four months of the current year compared to the same period in 2023. Hyundai's EV sales in China are minimal, and they are not manufacturing EVs in the US, missing out on the $7,500 tax credit and having to sell at a loss. The company's global EV sales volume has fallen to 6.2% of total sales, down from 8.4% the previous year. Hyundai has sold only 66,000 fully electric vehicles worldwide in the first four months, losing its position as one of the top five largest EV manufacturers.

05:00

🌏 Challenges in Major Markets for Hyundai

Hyundai is experiencing difficulties in key markets, such as China, where they have sold a factory at a significant loss due to poor sales. The lack of consumer interest in South Korean cars in China has led Hyundai to focus on other regions like South Korea, Europe, Southeast Asia, and Australia. The US market also poses challenges due to the absence of Hyundai's EV manufacturing presence, which limits their ability to take advantage of tax credits and compete effectively. Hyundai's sales of specific models, such as the Ioniq 5, have declined despite improvements and competitive pricing. The Ioniq 6 has seen a 70% drop in sales, possibly due to competition from the Tesla Model 3. Hydrogen-powered vehicle sales are also down by 64%. The company's rhetoric about focusing on EVs and growing sales contrasts with the actual decline in EV sales, which is likely to continue until Hyundai can establish a stronger presence in the US and China, the world's largest car markets.

Keywords

💡EV sales

EV sales refer to the sales of electric vehicles. This is a central theme of the video as it discusses Hyundai's performance in the electric vehicle market. The script mentions Hyundai's EV sales falling for six straight months, indicating a significant downturn in their electric vehicle business.

💡Infrastructure

Infrastructure in the context of the video refers to the supporting systems or services a country or organization relies on to function properly, such as charging stations for electric vehicles. The Hyundai COO mentions that the infrastructure is behind the technology, suggesting that the lack of sufficient charging stations may be affecting consumer confidence and EV sales.

💡Consumer confidence

Consumer confidence is the level of optimism that consumers feel about the economy and their personal financial situation. In the script, it is mentioned that when consumers are confident about infrastructure, it will be better for EV sales, implying that their trust in the availability and reliability of charging stations can influence their decision to purchase electric vehicles.

💡Production

Production in this context refers to the manufacturing of electric vehicles by Hyundai. The video script claims that Hyundai is in dire straits with their EV production and actual sales to customers, indicating a significant issue with their manufacturing capabilities or strategy.

💡Discounting

Discounting is the practice of selling goods at a reduced price. The script mentions that Hyundai has to discount their EVs seriously in the US to compete with other companies that qualify for EV incentives, which suggests a pricing strategy to maintain competitiveness despite financial losses.

💡Tax credit

A tax credit is a government incentive that reduces the amount of tax owed. In the video, it is mentioned that Hyundai cannot take advantage of the $7,500 tax credit in the US because they do not manufacture EVs there, which puts them at a competitive disadvantage compared to other manufacturers.

💡Market share

Market share is the portion of the total market for a particular product or service that a company or brand controls. The script discusses Hyundai's declining market share in the EV sector, with their sales falling by 31% in the first four months of the year, which indicates a loss of market dominance.

💡Manufacturing presence

Manufacturing presence refers to the locations where a company produces its goods. The video highlights Hyundai's lack of manufacturing presence in China and the US, which are two of the world's largest car markets, as a significant factor contributing to their declining EV sales.

💡Investment

Investment in this context refers to the funds Hyundai and Kia are putting into the production of more electric vehicles. The script mentions an investment of over $60 billion, indicating a commitment to expanding their EV production capabilities and market share.

💡Model Y

Model Y is a specific electric vehicle model produced by Tesla. The video compares Hyundai's IONIQ 5 to Tesla's Model Y, suggesting that the IONIQ 5 is a competitive option, especially if it can be purchased at a good price similar to the Model Y.

💡Nexo

Nexo is Hyundai's hydrogen-powered vehicle model. The script reports a 64% drop in worldwide sales for the Nexo, illustrating the challenges Hyundai faces not only in electric vehicles but also in the hydrogen fuel cell market.

Highlights

Hyundai's COO, Carlos Munos, claims EVs are still a driver of growth despite a slowdown in sales.

Hyundai is experiencing difficulties with EV production and sales, contradicting the COO's positive outlook.

Hyundai is reportedly losing money on each electric car sold, affecting their production willingness.

Hyundai's EV sales have declined for six consecutive months worldwide.

In the first four months of the year, Hyundai's EV sales dropped by 31% compared to the same period in 2023.

Hyundai's market share in China is minimal, with barely any EV sales.

Hyundai is not manufacturing EVs in the US, missing out on the $7,500 tax credit and selling at a loss.

Hyundai's fully electric vehicle percentage of total sales has dropped from 88.2% to around 6%.

Hyundai's total EV sales for the first four months of the year amount to 66,000 vehicles worldwide.

Hyundai has fallen out of the top five largest EV manufacturers globally.

Hyundai and Kia are investing over $60 billion to increase EV production and sales.

Hyundai's presence in China is weak, with a recent factory closure resulting in a significant loss.

Hyundai needs to focus on markets outside of China, such as South Korea, Europe, and Southeast Asia.

Hyundai's Ioniq 5 sales have declined, despite improvements and increased range.

Tesla's Model 3 has impacted Hyundai's Onix 6 sales, with a 70% drop.

Hyundai's hydrogen-powered vehicle sales are also down, with a 64% decrease in Nexo sales worldwide.

The host expresses hope for Hyundai's rebound, acknowledging the quality of their EVs but noting their current challenges.

Transcripts

in an interview yesterday with Hyundai's

coo he was asked this question is

Hyundai feeling the effects of a

Slowdown in EV sales now he responded by

saying this for us it's a driver of

growth it's true last year it was a

faster driver of growth but it's

representing more and more business for

us definitely the infrastructure is

behind the technology when the consumers

are confident about infrastructure it

will be better now

unfortunately what Hyundai coo Carlos

Munos claimed about Hyundai's EB sales

isn't true in fact Hyundai is in D

Straits when it comes to their EV

production and actual sales to customers

this year things have gone from bad to

worse I'm not saying the company doesn't

build great EVS their EVS are phenomenal

the big problem here is Hyundai is

losing so much money on every electric

car itself

that it doesn't actually want to produce

as many EVS as what they're letting you

believe in spite of Hyundai having some

really good electric cars they're not

actually making that many Hyundai's EV

sales have fallen for six straight

months worldwide every single month for

six months in a row in fact this year

Hyundai's EV sales have fallen by 31% in

the first four months of the year

compared to the first 4 months of

2023 this is becoming an increasing

problem for the company as the

percentage of cars it SS that are rs

continues to fall hello my friends

welcome to the channel I'm Sam Evans

you're watching the electric Viking

great to see you if we think about this

logically Hyundai sales in China well

they're barely selling any cars in China

Hyundai doesn't sell many EVS yet in the

US because it doesn't manufacture than

there so it can't take advantage of the

$7,500 tax credit it has to kind of sell

EVS at a loss in the US we know Hyundai

are making loss on it on its EV sales in

the US it's having to discount them

pretty seriously into order to contend

with other companies who do qualify for

those EV incentives for this reason

Hyundai doesn't want to sell too many

EBS in the US in spite of its rhetoric

because it loses so much money on

everyone that it SS now this situation

will probably change well definitely

change once Hyundai are building EVS in

America along with Kia but until that

happens it likely that Hyundai's EV

sales will continue to fall so far this

year Hyundai's EV sales have gone down

in its percentage terms as well the

number of vehicles as a percentage that

Hyundai is selling that are fully

electric has gone from about 88.2% last

year to around

6% now during the first four months of

the year Hyundai EV sales have continued

to to fall the volume now that are fully

electric is around 6.2% of the entire

company's sales it was

8.4% a year ago the wholesale volume of

all electric cars has fallen by

27% year-over-year in the month of April

so April was a little better than the

first three months of the year but in

total including Genesis Genesis and

Hyundai put together EV sales have

fallen by a total of

31% so far this year Hyundai has sold

6245 to fully electric cars worldwide

for the first four months of the year

Genesis EVS

3,681 that means um in total they've

only sold

66,000 electric cars worldwide over the

space of 4 months or around 16,000

electric cars per month and that means

means that Hyundai is no longer one of

the world's five largest so far this

year Hyundai has sold 66,000 Vehicles

including Genesis EVS worldwide so

around about 16,000 per month that means

Hyundai is is not even close to being

one of the world's 15 one of the world's

five largest electric vehicle

manufacturers it's it's a long way away

and you got companies like J BD Tesla

who are just absolutely killing it to be

honest even though Tesla's vehicle sales

went down in the first quarter this year

overall their this their growth over the

past 12 months has been actually very

impressive on the other hand the same

hasn't happened for Hyundai now Hyundai

is saying it will they're saying you no

no we're investing more than $60 billion

well combined with Kia they're investing

that amount into building a lot more

electric cars so they do plan on selling

a lot more but the question is where

will they sell them hyai doesn't really

successfully sell cars in China they've

just actually dumped a Factory that cost

them $1.2 billion to build they've

dumped that for a couple hundred million

they lost nearly a billion dollars on

that project that was a new Factory but

yeah the key reason they sold that is

cuz really their cars are not selling in

China for whatever reason people in

China don't want to buy South Korean

cars Kia haven't really sold

successfully in China either that leads

us to the US now obviously the US market

Hyundai is struggling as well for the

reasons I already outlined so really the

key Market Hyundai have to focus on is

in South Korea but also Europe and other

places such as South Korea such as

southeast Asia Australia uh you know

other places that are not China of

course building a new Factory in the US

will help it to rebound but right now

Hyundai need to do some really big

rebounding in order to catch up with

some of their Rivals now looking at

models the the reality here is guys that

as I've been saying on the channel now

people don't want sedans they don't they

are falling sedan sales are falling

that's the big problem for Lucid egmp

sales having a look at by model what is

actually happening here Hyundai earning

5 sales they have gone down even though

the car has been improved significantly

now it's got a bigger battery packet

it's got more range it's got some

significant improvements to it I think

it's a fantastic vehicle that people

should consider buying especially if you

can get one at a good price similar to a

model y absolutely have a look at the

onic 5 Hyundai onic 5 sales

8,100 that means those sales have

actually Fallen by a total of 25% in

April worldwide

32,600 down 14% so iic 5 sales haven't

dropped that much only 14% cona sales

have gone down significantly by 28% even

though that's actually the cheapest

vehicle you can buy in the US now

cheapest TV Hyundai onx 6 though this is

where well this vehicle has been a big

problem for hyday the onx6 sales are

down

70% to only 6,900 44 Vehicles it appears

as though the new Tesla Model 3 sedan

has been a bit of an issue for the

Hyundai onx 6 one of the key reasons is

the model 3 is obviously it's a bit

cheaper on the onx 6 and it's obviously

been very very well covered by the media

a lot of people are aware of it now when

it comes to hydrogen powered vehicles

Hyundai uh their sales are down as well

they sold 255 units last month overall

though they've only sold 862 worldwide

and sales for their their Hyundai nexo

have fallen by

64% worldwide whatever a Hyundai do I

really hope they bounce back cuz I I

think they make some great EVS but I

think what they're actually doing is

different to what they're saying guys

they're saying things all the time EVS

are the future we're focusing on EVS We

Believe EV sales are growing EV Sals are

going really well for us the truth is EV

Sals are not going well for Hundai at

this point in time and I believe the

biggest reason for that is simply they

don't make EVS in America yet they don't

have any presence in China

that's the two biggest car markets in

the world Hyundai need the US to bounce

back they need more models and more

affordable models in the US until that

happens this fall in EV sales is likely

to continue for the company thanks for

watching