Hyundai dealers celebrate market share gains in the U.S.

Hyundai and its dealers celebrated major market share gains in 2022 and discussed the company‘s next big moves at the NADA make meeting on Sunday.

The brand ended the year with 5.2 percent market share, up from 4.9 percent at the end of last year, according to data from Motor Intelligence.

Kevin Reilly, chairman of the Hyundai National Dealer Council and owner of Alexandria Hyundai in Alexandria, Va., said its success is due in part to Hyundai’s investment in its product lineup.

The Korean automaker’s early push into the electric vehicle market with the Ioniq 5 help capture a large chunk of EV shoppers. Its other “eco-friendly” vehicles –the Kona EV and electrified variants of the Tucson and Santa Fe crossovers as well as Sonata and Elantra sedans – also have enjoyed strong sales.

“Everybody’s very excited. There was a lot of applause there in terms of the market share gains and the profitability that we’ve been able to achieve as well,” Reilly said.

“The dealers are super excited about being a franchisee,” said Terry D’Arcy, dealer principal of D’Arcy Hyundai in Joliet, Ill.

“Hyundai talked a lot about the innovation in electrification it’s coming out with and the market share that has grown so much in the country and in the world,” D’Arcy explained, “They’ve just moved to number three [EV maker] in the country, which is a monumental thing for Hyundai.”

Part of Hyundai’s innovation includes a $5.5 billion investment in an EV battery complex under construction outside of Savannah, Ga., that will build Hyundai, Genesis and Kia vehicles as well as an additional partnership it formed with South Korean battery maker SK On Co. that will power its U.S.-built EVs.

Reilly said that investment in EVs will contribute to a “very bright future.”

“Ionic 5 is successfully out, Ioniq 6 is right on the heels of that and then the Ioniq 7 that we’ve seen,” Reilly said. The Ioniq 7 is a three-row crossover based on the Seven concept previewed at the 2021 Los Angeles Auto Show. It’s expected the Ioniq 7 will come to market in 2024.

Regarding the headwinds facing the industry, including the changing economy, Reilly said Randy Parker, Hyundai Motor America’s CEO, predicted that the next 12 months will be “great but different.”

“We’re still projecting sales gains in 2023,” Reilly said.