Despite concerns over a cooling EV market, Hyundai and Kia are “very bullish” as demand for their electric vehicles remains strong.
Over the past few months, I’m sure you’ve read headlines like “Automakers overestimated EV demand,” but some believe they are right on track. This includes Hyundai, Kia, and several others.
Senior executives from the Korean automakers told Reuters ahead of the LA Auto Show they are seeing strong demand for electric vehicles in the US.
“I am still very bullish on the battery electrics,” explained Jose Munoz, Hyundai’s global president, ahead of Friday’s event. Munoz pointed to doubling EV sales year-over-year as evidence.
Hyundai and Kia’s first dedicated EVs, the IONIQ 5 and EV6, both set US sales records in October. The strong EV demand propelled Hyundai, including Kia, to second in the US EV market behind only Tesla.
Hyundai claimed 4.8% of the US market through September, according to registration data reported from Automotive News.
Meanwhile, Kia accounted for 2.7% of the market for a combined 7.5%, or 64,000 EVs. Tesla is still in first by a wide margin (57.4%) while GM’s Chevy (5.9%) and Ford (5.5%) slipped.
Hyundai’s growth comes despite not qualifying for the $7,500 EV tax credit. Though the models do qualify through leasing.
In the first nine months of the year, electric vehicle registrations grew 61% to nearly 853,000. Electric vehicles crossed the 7% mark in total US sales in the first half of the year and are on pace to reach 1 million this year, according to BloombergNEF.
To put it in perspective, it took 10 years to sell one million EVs in the US, two years to reach the second million, and just over one year to hit the third.
Hyundai and Kia see strong US EV demand
Hyundai has plans to keep the momentum rolling despite delays from American automakers including Ford and GM.
“Based on what I see, I need more. If I had more capacity today, I could sell more cars,” Munoz said. Hyundai began construction on its first US EV and battery plant in Georgia last October. A year later, the company says 99.9% of the foundation work is complete.
Munoz added “Our investments in the battery electric plant in Savannah (Georgia) move on. So we’re pushing as much as we possibly can to get it ready by October next year.”
He said Hyundai is accelerating its investment and that “We are pulling ahead.” Once production begins, the $5.5 mega complex will enable Hyundai EVs to qualify for the tax credit, boosting its momentum further.
Hyundai followed Tesla last month in slashing lease prices on its most popular models. The IONIQ 5 and IONIQ 6 are offered at some of the cheapest rates since launching.
The automaker also extended its free EV charger promotion with the purchase or lease of select EVs through January 2, 2024. The deal is good on the 2023-2024 Hyundai IONIQ 5 and IONIQ 6, or a 2023 Kona electric.
Electrek’s Take
Although higher interest rates and inflation have stoked fear in some, Hyundai is charging ahead. The company is looking long term with its vision.
The EV market is at an all time high. Sales are about to cross the one million mark in the US. While GM and Ford are pushing back targets, Hyundai sees it as an opportunity.
EV sales will continue growing year-over-year and Hyundai aims to become a top three producer by 2030. Delaying investments now, would only set the automaker back further. Instead, Hyundai is doubling down and accelerating progress at its US electric vehicle plant.
Hyundai is attracting buyers with unique all-electric offerings designed from the ground up. Other EV makers like Rivian, are also seeing growth. The startup raised its production goal to 54,000 for the year after a big Q3 earnings.
Volvo is another automaker that expects the growth to continue. With new models like the EX30 (see our review), starting at around $35K, Volvo looks to stregthen its position in the EV market.
So is the EV market cooling? Or are automakers lowering expectations because newer, more competive models are hitting the market? Let us know what you guys think in the comments.
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Daimler Truck North America has helped alcohol distributor Reyes Beverage Group deploy fully 29 zero-emission Freightliner eCascadia Class 8 electric semi trucks in its California delivery fleet.
Reyes Beverage Group (RGB) plans to deploy the first twenty Freightliner electric semi trucks at its Golden Brands – East Bay and Harbor Distributing – Huntington Beach warehouses, marking the first phase in the company’s transition to a fully zero emission truck fleet by 2039. An additional nine eCascadia Class 8 HDEVs are scheduled for delivery to RBG’s Gate City Beverage – San Bernardino warehouse before the end of 2024.
RBG’s decision to adopt the Freightliner eCascadia builds on its recent transition to renewable diesel and its ongoing idle-time reduction program. These electric vehicles (EVs) “go electric” will contribute significantly toward the company’s stated goal of reducing its carbon emissions 60 percent by 2030. These 2 trucks will save some 98,000 gallons of diesel fuel annually, and avoid putting nearly 700 metric tons of carbon dioxide and other harmful emissions into California’s air each year.
“We are excited to be among the first in our industry to adopt these electric vehicles,” explains Tom Reyes, President of RBG West. “This is a significant step toward our sustainability goals and ensuring compliance with state regulation as we transition our fleet to EV.”
Freightliner’s eCascadia electric semi trucks offer a number of battery and drive axle configurations with ranges between 155 and 230 miles, depending on the truck specification, to perfectly match customers’ needs without compromising on performance and load capacity. RBG’s Freightliner eCascadia tractors will rely on electric charging stations installed at each facility, allowing them to recharge to 80% capacity in as little as 90 minutes for RGB’s trucks, which feature a typical driving range of 220 miles as equipped.
The Windsor, Ontario utility says it’s driving towards a more sustainable future after adding a dozen new electric vehicles to its fleet – including a state-of-the-art, 55-foot Terex electric bucket truck.
Based on a Class 7 (33,000 lb. GVWR) International eMV Series BEV, the Terex EV takes the eMV’s 291 kWh battery and adds the Terex Optima 55-foot aerial device and HyPower SmartPTO system to create a fully electrified utility service vehicle that can do anything its diesel counterparts can do while offering better, safer working conditions for utility crews.
“We’ve got 12 EVs,” said Gary Rossi, president and CEO, Enwin Utilities. That number represents fully 10% of the utility’s entire vehicle fleet. “Our centerpiece is our electric 55-feet bucket truck. It’s very quiet,” continues Rossi. “So (the truck) allows us, our crews, to communicate better. It’s not as loud in the community when they’re doing repairs in someone’s backyard.”
That notion is echoed by Terex, itself. The company says its HyPower SmartPTO (power take off), which replaces a mechanical PTO, avoids a loud idling engine while reducing workers’ exposure to toxic exhaust fumes.
“It’s all about building Windsor’s future and literally plugging into the battery factory down the road that is being constructed and showing that Windsor is a leader on this front,” says Drew Dilkens, Mayor of Windsor. “I don’t own an internal combustion engine vehicle,” adds Mayor Wilkins. “I only own two electric cars. My wife and I, we made the change starting in 2019 and I can’t see myself ever going back.”
CTV News Windsor
Enwin says its commitment to clean energy extends beyond its vehicle fleet. The company recently unveiled a massive MW solar rooftop net metering facility at its Rhodes Drive headquarters with over 3,000 solar panels. The site, one of Canada’s largest solar installations, generates enough clean electricity to power 300 homes annually.
Built by Damen Shipyards and the first fully electric tugboat to be deployed in the Middle East, the new RSD-E Tug 2513 Bu Tinah put in its record-breaking performance took place at Khalifa Port during ADIPEC, the world’s largest energy conference.
The RSD-E Tug 2513 is based on the already efficient hull design of the standard, diesel-powered RSD Tug 2513, but its new, fully electric propulsion arrangement enables it to offer zero emissions operations in situations where oil or fuel leakage would be – let’s say especially bad.
But, while the “clean” aspect of all-electric operation is obvious, its Guinness World Record of performance shows that the Damen RSD-E Tug 2513 is up to whatever task its owners put to it.
“This Guinness World Record achievement demonstrates that the transition to alternative energy does not come at the cost of performance,” explains Maritime & Shipping Cluster, AD Ports Group, Captain Ammar Mubarak Al Shaiba. “We are very proud that the first electric tug in the Middle East is also making waves on a global level with this accolade and the fact that in parallel it is improving the sustainability of our operations alongside cost efficiencies in terms of overall fuel saving is extremely important. This vessel is now a key component of our Marine Services fleet and our electrification strategy.”
To earn its record, the the Damen RSD-E Tug 2513 Bu Tinah recorded an average high peak bollard pull of 78.2 tonnes (about 86 ‘Murican tons). The record-setting tugboat can undertake a minimum of two towage operation on a single charge, and can be recharged on a marine DC fast charger in just two hours.