Hyundai targets sales of 1m cars annually in US by 2025

The US subsidiary of South Korean auto giant Hyundai Motor said Sunday it aims to sell 1 million units annually by 2025, on the back of rapid sales of the new Genesis model and sport utility vehicles.

While the once-lucrative US market has seen total car sales fall by 1.1 percent last year to 17.08 million units due to global protectionism and sluggish global economy, sales of recreational vehicles inched up 2.8 percent, increasing its ratio in total sales to 71.9 percent in 2019 from 69.1 percent in 2018.

Hyunda Motor America said it will continue to strengthen its SUV lineup to boost car sales, with the goal of selling 728,000 units in 2020. 

Last year, Hyundai sold a total of 710,000 units of vehicles, up 4.7 percent on-year. Its sister company Kia Motors sold 615,338 units over the same period, up 4.4 percent.

The company’s sedan sales in the US fell by 8 percent in 2019 on-year, but its RV sales climbed 20.1 percent over the same period.

According to Hyundai, a new version of Tucson will return to the US market in five years, completing the full SUV lineup which comprise different-size models from Kona to Palisade.

In addition to new SUV models, Hyundai Motor America is betting on its luxury brand Genesis to play a key role this year.

The carmaker said it will launch GV80, the first-ever SUV model under the Genesis brand, in summer, catering to American customers’ high demand for luxury SUVs.

Last year, SUVs attributed 59 percent of the total luxury car market in the US. Market experts viewed that by 2025, the segment will grow to take 65 percent in the overall pie.

Mark Del Rosso, head of Genesis’ North American operations, said the brand will “earn the trust of customers” by focusing on key considerations for luxury shoppers such as quality and reliability, as well as by infusing its design philosophy ‘Athletic Elegance’ style into the products.

He added that Genesis will have six models in its lineup by end-2021, comprised of three sedans, two SUVs and one electric vehicle model. Currently, G70, G80 and G90 sedans are sold in the US.

To raise brand awareness, the company plans to open a Genesis House in New York within this year to give US customers better experience of the brand.

As of last year, Hyundai Motor was ranked the seventh-largest automaker in the US in terms of number of units sold. General Motors topped the list, followed by Ford, Toyota, Fiat Chrysler, Nissan Mitsubishi and Honda.

By Kim Da-sol (ddd@heraldcorp.com)