Hyundai Motor Company and Kia reported a significant increase in sales in the U.S. market last month, where the tariff on imported cars was implemented, compared to the same month last year. This surge in sales is interpreted as U.S. consumers hastened to make purchases, anticipating that Hyundai and Kia would reflect the tariff in their prices.
On the 1st (local time), according to Hyundai Motor Company's U.S. subsidiary, Hyundai's sales in the United States last month totaled 81,503 units, a 19% increase compared to the same period last year (68,603 units). This is the highest figure recorded for April sales.
By model, the Tucson saw a 41% increase in sales compared to the same month last year, marking the largest increase. Following it, the Avante increased by 30%, and the Santa Fe (28%), Palisade (15%), and Sonata (12%) also showed double-digit increases compared to the same period last year.
Kia also sold 74,805 units in the United States last month, reflecting a 14% increase compared to the same month last year. Both Hyundai Motor Company and Kia have set new monthly sales records for seven consecutive months.
Kia saw a substantial increase in sales of sports utility vehicles (SUVs) and multi-purpose vehicles (MPVs). The Carnival's sales surged by 79% compared to the same month last year, with the Telluride and Sportage increasing by 21% and 18%, respectively.
Analysts suggest that the increase in sales for Hyundai and Kia last month is due to consumers rushing to purchase vehicles in anticipation of price increases due to tariffs. The Trump administration has imposed a 25% tariff on all imported cars since the 2nd of last month. Hyundai Motor Group announced that it would not reflect the tariff in prices until June 2. Consequently, U.S. consumers believe that prices are likely to rise after June 2 and have started to make purchases in advance.
In fact, in the U.S. recently, there has been a growing concern among consumers about rising new car prices due to forthcoming tariff reflections, leading to an increase in used car prices as well. The Mannheim Used Car Price Index, published by Cox Automotive, recorded 207.1 in mid-month, the highest level in one and a half years since 209.4 in October 2023. The Mannheim Index is a metric calculated based on over 5 million used car transactions each month, with prices as of January 1997 set as a baseline of 100.
Cox Automotive analyzed that dealers are buying vehicles with the expectation of increased used car demand as new car prices are likely to rise due to the tariff being reflected.
In the finished car industry, companies that have not raised prices so far are expected to have no choice but to reflect the tariff after June. In particular, for Hyundai and Kia, many of the models currently recording high sales in the U.S. are produced in Korea and exported, making it a situation where they must increase prices or face a decline in performance.
According to Hyundai Motor Company's U.S. subsidiary, last month, sales of Hyundai's hybrid models in the U.S. surged by 46% compared to the same month last year. The only hybrid model that Hyundai sells in the U.S. produced locally is the Santa Fe Hybrid. Therefore, if tariffs are not reflected in prices, it is analyzed that the company will not gain substantial benefits even if it sells a lot of hybrid cars.