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.