Hyundai Group overtakes home-bred brands to take No.2 spot in US EV game

Hyundai Motor Group, consisting of Hyundai, Kia and Genesis, recently became the second-largest selling electric vehicle (EV) organisation in the United States, overtaking American companies Ford and General Motors (GM) while trailing Tesla. As per local reports, Hyundai Motor Group has managed to secure a 10 per cent market share as against 7.4 per cent with Ford and 6.3 per cent with GM. Tesla still has over 50 per cent market share here.

Hyundai Motor Group has made very aggressive moves in the United States, expanding its product portfolio which boasts of all-electric models, hybrids as well as plug-in hybrids. It has made investments worth billions of dollars while also establishing a new plant in Alabama to manufacture its cars that are powered by alternate sources of energy.

What is also impressive about Hyundai Motor Group's achievement is that at present, none of the Hyundai EVs in the US are eligible for the $7,500 federal EV tax credit. This tax credit is applicable for models that meet certain strict norms about sourcing of components. But EVs that are leased, irrespective of where components are sourced from, come under commercial vehicle segment and as such eligible for full tax credit. And this is what may have also benefited models from Hyundai Motor Group.

Aggressive expansion on the eastern shore

Kia recently began manufacturing its all-electric EV9 flagship model at its renovated facility in Georgia. Deliveries are expected to start from October onwards and since entirely manufactured locally, will be eligible for the $7,500 tax credit. Hyundai too is looking at expanding its capacity at its plant in Alabama's Montgomery. But according to reports, while EVs are faring well, Hyundai's hybrids and plug-in hybrid sales too have gone up by 25 per cent in the first six months of 2024.

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