Hyundai's electric car sales in 2024 have been a disaster
Summary
TLDRHyundai'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
- đ Hyundai's COO, Carlos Munoz, claims that EV sales are a driver of growth for the company, despite contrary evidence.
- đ 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.
- đ The company is reportedly losing money on each electric vehicle it sells, leading to a reluctance to produce as many EVs as they claim.
- đ Hyundai's EV sales have fallen for six consecutive months worldwide, indicating a sustained trend rather than a temporary dip.
- đšđł 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.
- đșđž 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.
- đ 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.
- đ Competitors like Tesla and BYD are outperforming Hyundai in the EV market, with Tesla showing impressive growth despite a recent dip in sales.
- đ Hyundai and Kia are planning to invest over $60 billion to increase EV production, aiming to boost sales in the future.
- đ 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.
- đ 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
đ 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.
đ 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.
Mindmap
Keywords
đĄEV sales
đĄInfrastructure
đĄConsumer confidence
đĄProduction
đĄDiscounting
đĄTax credit
đĄMarket share
đĄManufacturing presence
đĄInvestment
đĄModel Y
đĄNexo
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
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