Electric Vehicle Sales in South Korea: Breaking Records in 2024
Electric vehicle sales in South Korea are on the rise, despite a global trend of sliding sales in the sector. In the first half of 2024, Kia set a new EV sales record, with 29,392 units sold, marking the best half-year for electric vehicles in the company’s history. Hyundai is also performing well, with the Ioniq 5 and Ioniq 6 models seeing significant increases in sales compared to the previous year.
**Kia’s Success with EV Models**
Kia’s EV6 is leading the charge in the electric vehicle market, selling 10,941 units in the first half of 2024. The EV6 has seen a 31.3 percent increase in sales, while the EV9 has sold 9,671 units. The Niro, Kia’s popular SUV, has also seen strong sales, with 8,780 units sold. While the company as a whole has experienced a 2.0 percent drop in overall vehicle sales, strong performance in the electric vehicle segment has helped offset this decline.
**Hyundai’s Impressive Sales Growth**
Meanwhile, Hyundai’s Ioniq 5 has had a successful year, with a record-setting month in June where 3,755 units were sold. Overall, the Ioniq 5 has seen a 37 percent increase in sales compared to the previous year, with a total of 18,728 units sold. The Ioniq 6 has also shown growth, with 6,912 units sold. Despite these strong performances, Hyundai’s overall vehicle sales have only increased by 2.2 percent, demonstrating the importance of electric vehicles in driving growth for the company.
**Challenges and Setbacks in Sales**
While the electric vehicle segment has been a bright spot for both Kia and Hyundai, there have been challenges in the market. Both brands experienced a drop in sales in June, with Hyundai down 2.5 percent and Kia down 6.5 percent. The CDK Global cyberattack, which affected dealers’ software systems, is believed to have contributed to the slower sales in June. The outage disrupted service and sales operations, leading to a nearly $1 billion estimated loss for dealers.
**Looking Ahead: Recovery and Future Growth**
As CDK Global works to restore its software systems and dealers recover from the cyberattack, both Kia and Hyundai are expected to bounce back from the sales slump in June. The strong performance of electric vehicles is a positive sign for the future growth of the companies, as well as the broader electric vehicle market in South Korea. With exciting new models on the horizon and a growing demand for environmentally-friendly vehicles, the electric vehicle segment is poised for continued success in the coming years.