This is the third consecutive month of growth, with both companies achieving double-digit increases.
Hyundai and Kia are delivering record sales once again. Both automakers reported that they drove record U.S. new-vehicle deliveries in October. The driving force behind these incredible numbers was the high demand for electric and hybrid models.
Hyundai Motor America broke records by selling 71,802 units, a remarkable 18 percent increase from October 2023. Their iconic Sonata doubled to 6,300, while the Ioniq 5 EV rose 51 percent to 4,498. The Tucson and Palisade crossovers rose 27 percent.
According to Randy Parker, CEO of Hyundai Motor America, this is the third consecutive year the automaker has set an October record. As far as year-to-date numbers are concerned, Hyundai is up 4 percent.
Kia also broke their October record with a sale of 68,908 units, a 16 percent increase from October 2023. These spectacular results were driven by increased demand for its EV and crossover models. The positive sales were driven by the Sportage crossover, up 24 percent, followed by Telluride, up 14 percent, and the new Kia K4 compact sedan, which sold 7,901 vehicles.
However, despite these gains, Kia’s sales for the first 10 months of 2024 were down 1.6 percent.
Regarding the overall market, U.S. new light-vehicle sales are projected to rise by 11 percent in October due to stronger retail demand despite a drop in fleet sales. The annualized sales rate is expected to be around 15.8 to 16.1 million units, an increase over the previous year.
Inventory is gradually recovering, with October’s levels reaching an 81-day supply, up 25 percent from last year. However, supply remains below pre-pandemic levels, and demand for hybrid vehicles still outpaces supply.
Incentive continues to rise over the month as inventory levels recover in an attempt to entice new buyers. The biggest deals are being offered on electric vehicles (EVs), which are rising significantly, averaging 11.5 percent of the sticker price, up 4.7 percent from last year.
In short, Hyundai and Kia’s record sales reflect consumer interest in electrified options, and a recovering inventory is helping meet demand. Dealers may continue to benefit from rising inventory and incentives as they head into year-end sales.
