Hyundai Motors America, the American arm of South Korean automobile manufacturer, set a new record in terms of Ionic 5 sales in the second quarter (Q2) of 2024, despite a slight decline in its overall deliveries. Enjoying a significant boost in its all-electric vehicle (EV) segment, Hyundai announced that sales of the Hyundai Ioniq 5 compact crossover SUV significantly increased to settle at 3,755 units, up 20 per cent year-over-year.

The month of June was quite challenging for the company as its total American sales slipped 2.5 per cent year-over-year to settle at 67,631 units. But strong EV sales kept the company afloat. Last month, the company sold a total of 4,669 E-GMP platform-based EVs in the U.S., representing a growth of around 9 per cent. The figure accounted for nearly 6.9 per cent of the brand's total sales volume. Overall, during the first half of this year, total sales of Hyundai EVs jumped 33 per cent year-over-year.

As already mentioned above, the Hyundai Ioniq 5 contributed a lot to the company’s strong EV sales. Apart from the Ioniq 5, the Ioniq 6 also made a significant contribution by attracting 914 buyers. Unfortunately, the automaker didn’t report sales figure for the Hyundai Kona Electric as this EV was counted together with the internal combustion variant of the vehicle. The number of performance-oriented Ioniq 5 N sold by the company was also remained unclear.

Recently, the South Korean manufacturer offered lease deals both on the Ioniq 5 and Ioniq 6, making these two battery-powered vehicles some of the most affordable vehicles in the U.S. market. This step was taken by the company to avail federal tax credits, which are not available for the Ioniq 5 and Ioniq 6 because they are not built in America, but these credits still available when these EVs are leased.

Hyundai’s record-breaking sales of the Ionic 5 crossover e-SUV in Q2 2024 highlights the soaring consumer demand for the Korean brand’s EVs, in spite of various challenges such as lack of federal tax credits and consumers’ preference for SUVs and pickup trucks over sedans. As the Korean brand is now preparing to produce the Ionic 5 in the U.S. to enable the vehicle to qualify for full tax credits, one can expect the company to continue to perform well in the EV market.