Hyundai Motor America had the strongest sales month of the year thanks to a solid performance from Hyundai and Genesis crossovers and fuel-sipping “green” offerings, but despite the improvement, the offering remains a drag on volume.
Combined sales of Hyundai and Genesis in the US fell 12 percent in June to 67,597. Still, sales of the Hyundai brand peaked in 2022 from 63,091 during the month. Combined volume in the second quarter was down 21 percent to 198,136. In the first half, both brands posted combined sales of 396,535, a decrease of 13 percent. Genesis sales are now up 19 straight months year over year, while Hyundai volume is down four straight months year over year.
Hyundai sales chief Randy Parker attributed the declines to the ongoing microchip shortage and said it is creating a “distorted” year-over-year comparison due to healthier inventories in the first half of 2021.
“Last year around this time, stock levels really started trending downward, and from this point you will see that we are a lot closer to [favorable] year-over-year comparisons,” Parker said.
Hyundai is not out of the woods yet. Hyundai Motor Co. COO Jose Munoz told reporters at a media briefing this week at the company’s R&D center in Michigan that the third and fourth quarters will bring them closer to “a normal year,” but they are still battling. with shortages of chips and other components throughout the global supply chain. Munoz noted that rising interest rates will slow demand and bring it back to “equilibrium,” but until then, demand remains “strong.”
Brands: Hyundai, down 13 percent in June and down 23 percent at 184,191 in the second quarter; Genesis, up 11 percent to 4,506 in June and 26 percent to 13,945 in the second quarter.
Notable nameplates: Palisade, up 1.4% in the second quarter and up 15 percent in June; Nexo, up 88% in the second quarter and up 123% in June; Tucson, down 12% in the second quarter and up 7% in June; Santa Fe, down 6.4% in the second quarter and down 4.6% in June; Sonata, down 65% in the second quarter and 52% in June.
Incentives: $620 in Q2, down 71 percent, according to TrueCar.
Average transaction price: $37,415 in Q2, up 18 percent, according to TrueCar.
Fleet mix: In June, Hyundai recorded zero fleet shipments for the sixth consecutive month.
Stock: Hyundai started June with 19,000 units. Parker said he expects the stock to gradually improve in the second half.
Quote: “When I first started the company three years ago, we had about 70 percent passenger cars and 30 percent [crossovers]Parker said. ‘Now we’ve flipped the script and we’re running almost 70 percent [crossover] and 30 percent passenger car.”
Did you know? Hyundai discontinued both Elantra and Accent at the beginning of June due to problems with pretensioners. Hyundai said that after they repaired the models, both sedans, especially Elantra, came back strongly in the second half of the month. The accent, that will be discontinued for the 2023 model yearended June up 118 percent with sales of 2,088.