Hyundai and Kia are closing the gap with Tesla as US EV market share hits double-digits

Hyundai Motor Group, including Tesla, is gaining ground on Tesla in the US electric vehicle market. After a record start to 2024, Hyundai and Kia accounted for 11.2% of the EVs sold in the US through May.

Hyundai and Kia have been on a roll with some of the most affordable, fuel-efficient electric cars in the US.

Hyundai has six of the top ten most fuel-efficient EVs on the market (by trim) in 2024, while Kia’s EV6 also made the list. Offering over 300 miles range, fast charging in under 20 mins, and an affordable price tag, the Korean automakers are making their presence known in the US.

According to data from the Korean Automobile & Mobility Association (via BusinessKorea), after selling 48,383 EVs in the US through May, Hyundai Motor accounted for 11.2% of the US market.

Hyundai Motor’s share has risen from 3.2% in 2020, 3.4% in 2021, 10.6% in 2022, and 6.8% last year.

With an 11.2% share, Hyundai and Kia are closing the (massive) gap with Tesla. While Tesla led by 52.9% over Hyundai last year, the gap has narrowed to 40.5% through May 2024.

Hyundai and Kia are closing in on Tesla

Despite other US automakers like Ford and GM pulling back on EV initiatives, Hyundai is not looking to slow down.

Although Tesla’s market share falling was inevitable, Hyundai and Kia outpacing rival automakers in the US shows the Korean automakers are doing something right.

In an exclusive interview with Electrek, Hyundai America CEO Randy Parker told us the automaker is “humble and hungry” to separate itself from the competition. So far, it seems to be working.

Hyundai’s IONIQ 5 set a new monthly sales record in May, with 4,449 units sold. Through the first five months of the year, Hyundai has sold nearly 15,000 IONIQ 5 models.

After launching the EV9 last year, Kia has sold 7,766 electric SUVs through May, also a new record. With EV9 assembly kicking off at its West Point, GA plant last month, Kia expects it to gain access to the $7,500 tax credit, which should help drive demand.

Hyundai is opening its first EV and battery plant in the US later this year. Once up and running, Hyundai will begin assembling the IONIQ 5, which it expects will also qualify for the tax credit.

In the meantime, Hyundai has been passing the incentives on through leasing. With incentives, Hyundai’s EVs are even cheaper than gas models.

Hyundai is promoting 2024 IONIQ 6 lease rates as low as $189 per month and $199 per month for the Kona Electric. Even the 2024 IONIQ 5 is featured at $229 per month. All include a $7,500 bonus cash offer.

Are you ready to see why Hyundai (and Kia) EVs are gaining on Tesla in the US? We can help you get started. You can use our links below to search for deals on Hyundai and Kia EVs at a dealer near you.