South Korean automobile giant Hyundai Motor Group suffered a major setback in the first half (H1) of 2024, with global sales of its Hyundai and Genesis brands experiencing significant declines despite an uptick in the U.S. sales. Reflecting broader market challenges and complexities, the South Korean automaker experienced a steep decline in its electric vehicle (EV) segment as well. In addition to broader market challenges and complexities, it points to tough competition, especially from Chinese brands.

The group’s global vehicle sales, including both Hyundai and Genesis, declined slightly more than 6 per cent year-over-year to settle at 351,516 units in the month of June. First-half (H1) sales were down by roughly 0.9 per cent compared to the corresponding six-month period of 2023. In spite of strong American sales, the Hyundai brand’s global electric car sales were down by double digits. Wholesale deliveries fell 30 per cent, while the Ioniq 6 e-SUV lost roughly 66 per cent of its volume.

The figures show that the South Korean automaker is facing a tough time, noting a notable decline in all-electric as well as plug-in hybrid vehicle sales. June marked the eighth month of sales decline in a row, despite the fact that the global EV market kept expanding.

Last month, the group’s plug-in vehicles' combined wholesale shipments amounted to 21,028 units, down 34 per cent year-over-year. This figure includes retail sales in in the South Korean manufacturer’s home market plus overseas sales. The volume represents roughly 6.0 per cent of the manufacturer’s total sales volume, significantly down from 8.5 per cent in the same period last year.

The wholesale shipments of all-electric vehicles slipped 34 per cent to 17,217 units, including 16,193 Hyundai and 1,024 Genesis, down 34 per cent and 33 per cent year-over-year, respectively. The company’s global all-electric car sales, however, exceeded the mark of 18,000, which slightly exceeded the wholesale figure.

Hyundai Group’s recent downturn in global EV sales underscores not only ongoing market pressures but also competitive dynamics. However, despite facing a notable decline in plug-in hybrid as well as all-electric categories, the Korean brands remain committed to expanding their electric car lineups with new models, such as the Hyundai Inster/Casper EV. As the EV landscape evolves, Hyundai Group’s strategy adjustments and new offerings will obviously be critical in navigating future challenges and new opportunities in the EV market.