Four out of ten Hyundai Motor Company and Kia sport utility vehicle buyers opted for hybrid models in the first quarter of this year in the South Korean market, highlighting the penetration of dual-power vehicles amid a slowdown in electric vehicle demand.
According to industry sources Sunday, Hyundai Motor and Kia sold 150,492 SUVs, of which 59,386 units were hybrids, accounting for 39.5 percent. Last year, the domestic sales of Hyundai and Kia hybrid SUVs nearly doubled from 117,499 units in 2022 to 244,776 units, with the hybrid purchase ratio reaching 40.8 percent.
Notably, Hyundai, which historically had a lower volume of SUV sales than Kia, has witnessed a dramatic surge in hybrid SUV sales, rising 3.5 times from 26,250 units in 2022 to 92,290 units in 2024. This growth has led to a consistent increase in the share of hybrid SUV models from 12.3 percent to 37.6 percent in the same period.
Hyundai’s Santa Fe Hybrid stands out as the best-selling vehicle powered by an internal combustion engine and an electric motor, with its hybrid purchase ratio increasing from 47 percent in 2022 to 77 percent in the first quarter. In addition, for the All-New Palisade, launched in January this year, it has been reported that 67 percent of the preorder customers have chosen the hybrid model.
In the case of Kia, its Sorento Hybrid topped domestic SUV sales from January to March with 26,676 units. The Carnival and Sportage Hybrid SUVs secured the No. 2 and No. 3 positions, respectively, demonstrating the strong competitive edge of Kia’s recreational vehicle lineup within the brand.
Industry watchers anticipate that hybrid vehicles could surpass 50 percent of total local SUV sales this year for Hyundai and Kia, potentially offsetting the impact of automobile tariffs imposed by the US.
“Hybrid vehicles are approximately 20 percent more expensive than the internal combustion engine variants and boast higher profit margins,” said Kim Pil-su, a car engineering professor at Daelim University. “Hyundai, along with Kia, has incorporated hybrid engines across nearly all of its car lineup, appealing to customers who prioritize fuel efficiency and seek a practical alternative to electric vehicles.”
During the automaker's recent conference call, Lee Seung-jo, head of the finance and planning division of Hyundai Motor Group, stressed that Hyundai achieved record-breaking sales revenue and operating profit for the first quarter, which was primarily driven by the highest-ever sales of hybrid vehicles.
From January to March, the sales volume of Hyundai Motor and Kia’s eco-friendly cars worldwide climbed 38.4 percent and 10.7 percent, respectively, to 212,426 and 174,000 units from the previous year. Hybrids accounted for 64.5 percent of Hyundai’s and 59.8 percent of Kia’s eco-friendly vehicle sales.
hyejin2@heraldcorp.com
