Azernews.Az

By Alimat Aliyeva

Kia surpassed Hyundai Motor in U.S. sales for the first time in January, highlighting a shift in the competitive dynamics within Hyundai Motor Group as the demand for sport utility vehicles (SUVs) reshapes the American auto market, AzerNEWS reports, citing Korean media.

According to January’s U.S. auto sales data, Kia sold 64,502 vehicles, outpacing Hyundai Motor’s 60,794 units, which also include sales of the luxury Genesis brand. This marked the first time Kia overtook its larger sibling in monthly sales in the U.S. The Hyundai Motor Group’s combined sales for the month reached 125,296 vehicles, its highest-ever January total.

The rivalry between the two brands is largely centered on SUVs, which dominate the U.S. market. SUVs, along with pickup trucks and vans, are classified as "light trucks," a category that consistently outperforms traditional passenger cars like sedans and hatchbacks.

Hyundai's Tucson remained the group's top-selling model in January, with 14,428 units sold, although its sales dipped compared to the previous year. Kia's Sportage, which sold 13,984 units—up 23 percent year-on-year—was close behind, narrowing the gap to under 500 units.

Kia also saw strong sales in other models. The K4 sedan sold 11,642 units, ranking third among the group’s vehicles in the U.S., while the Telluride SUV sold 9,424 units, surpassing Hyundai’s Palisade in the full-size SUV segment.

Hyundai and Kia compete in nearly every SUV category, from subcompact to full-size. Last year, Hyundai led the U.S. in annual SUV sales across segments, with its models—the Kona, Tucson, Santa Fe, and Palisade—outselling Kia's counterparts like the Seltos, Sportage, Sorento, and Telluride.

However, January’s results suggest that the competition is tightening. Kia’s Seltos and Sportage gained on Hyundai’s Kona and Tucson, while the Telluride overtook the Palisade. If sales of the second-generation Telluride take off in February, Kia's market share could rise even further, according to Lim Eun-young, an analyst at Samsung Securities.

In the domestic South Korean market, where sedans remain more popular, Hyundai Motor still leads Kia. Hyundai's strong lineup, including models like the Avante, Sonata, and Grandeur, helped it sell 712,959 vehicles in Korea last year, far ahead of Kia's 548,204 units—a gap of more than 160,000 vehicles.

However, as SUVs gain popularity domestically, the competition between the two brands is likely to heat up. In Korea, the share of SUVs in new car sales has steadily increased, from 40.1 percent in 2021 to an expected 51.1 percent by 2025, surpassing half of all sales. If this trend continues, Kia’s stronger SUV lineup could give it an edge. Kia's SUVs already outsell Hyundai’s in the subcompact, compact, and midsize segments in Korea.

In particular, Kia's midsize SUV, the Sorento, was the best-selling vehicle in Korea last year, with 100,002 units sold—well ahead of Hyundai's Santa Fe, which sold just 57,891 units.

Overseas, industry observers are also keeping an eye on the competition between the two brands. U.S. automotive magazine MotorTrend recently compared Hyundai and Kia, noting that while both share many similarities, each brand appeals to different consumer preferences. "Hyundai is more conservative and mainstream, offering a balance of freedoms and restrictions, while Kia’s narrower focus allows it to refine its identity and stand out," the magazine noted.

The growing competition between Kia and Hyundai within their shared parent company not only marks a shift in the automotive landscape, but it also reflects broader trends in consumer preferences. As the SUV market continues to expand, both brands will need to differentiate themselves further to capture the attention of increasingly discerning buyers.

This dynamic between Hyundai and Kia also underscores a larger global automotive trend: the growing dominance of SUVs and the increasing importance of brand identity as the competition in this segment intensifies. As the rivalry heats up, it could lead to even more exciting innovations in both design and technology, making for a more diverse and competitive market.