November 27, 2024

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Hyundai Motor Group’s flagship electric vehicle, the Ioniq 6 (Hyundai Motor Group)

Hyundai Motor Group became the second-largest car brand in terms of sales in the US electric vehicles market in the first quarter of this year, data showed Monday.

Following Tesla’s 336,892 units, Hyundai and its smaller affiliate, Kia, sold 38,457 units in the first half of this year, up by 11 percent compared to 2022, according to auto market tracker Motor Intelligence, cited by CNBC.

Hyundai-Kia outpaced General Motors, which was second in EV sales during the January - June period last year. The number of electric cars and trucks sold by the US automaker more than tripled to 36,322 units.

Volkswagen and Ford Motor Company came in at fourth and fifth place after selling 26,538 units and 25,709 units, respectively.

Industry insiders say Hyundai has taken advantage of the loophole in the US’ Inflation Reduction Act by collecting EV consumer tax credits of up to $7,500 on their leased cars.

The law is meant to offer a tax credit for purchases of EVs assembled in North America and that consist of critical materials extracted or processed from the US or in a country that has a free trade agreement with the US, or are recycled in North America. But following several automakers’ requests -- including Hyundai’s -- the US Treasury issued its approval for the tax credit to extend to leased cars in the IRA guidance in December 2022.

Hyundai has ramped up its EV leasing from around 2 percent early this year to more than 30 percent, according to Hyundai Motor America CEO Randy Parker.

The data, however, showed the sales gap between the No. 1 EV maker, Tesla, and Hyundai recorded 298,435 units, which has widened to more than double the gap between last year's No. 1, Tesla, and No 2., GM.

“Hyundai’s EV plant in Georgia, the US, will start operations as early as next year. We believe more Hyundai cars will be eligible for IRA incentives, closing the sales gap with Tesla,” said an official from Hyundai Motor Group.

In a move to accelerate EV production in the US, the carmaker is setting up two joint battery manufacturing plants each with LG Energy Solution and SK On. The combined annual production capacity is projected at 65-gigawatt-hours, enough to supply approximately 600,000 units of electric cars.

By Byun Hye-jin (hyejin2@heraldcorp.com)