Hybrids and absolutely electrical automobiles have propelled Hyundai to attain its highest first-quarter gross sales ever, in addition to its second-best March gross sales in historical past. Kia additionally carried out strongly in Q1 2025, although it noticed a slight decline in gross sales of its EV6 and EV9 fashions. Each manufacturers are at present having fun with a profitable interval, however the forthcoming tariffs proposed by the Trump administration could current important challenges.
March marked a record-setting gross sales month for Hyundai, contributing to a exceptional first quarter. This announcement follows the latest opening of Hyundai’s $7.6 billion Metaplant in Georgia, attended by journalists, together with Patrick George from InsideEVs. The ability goals to spice up native manufacturing of EVs and hybrids in the USA.
Kia additionally reported spectacular quarterly outcomes, reaching record-breaking gross sales, regardless of a minor drop in electrical automobile gross sales. In March, Hyundai bought 87,019 automobiles, reflecting a 13% improve year-over-year. Throughout the primary quarter of 2025, gross sales reached 203,554 models, a ten% rise in comparison with the earlier yr. Though gas-powered automobiles comprised most of those gross sales, each electrical and hybrid fashions performed a task within the general progress.
The Ioniq 5 skilled a 26% improve in gross sales this quarter, with 8,611 models bought in comparison with 6,822 models final yr. Conversely, gross sales of the Ioniq 6 fell from 3,646 models in Q1 2024 to three,318 models this quarter, marking a 9% decline. Total, gross sales of electrical automobiles rose by 3%, whereas hybrid gross sales surged by 68%.
Whereas Hyundai combines the gross sales figures of hybrids and conventional gasoline fashions, it stays unclear what number of hybrids had been bought particularly. Nevertheless, in style fashions throughout all powertrains in Q1 included the Elantra, Tucson, and Santa Fe, all of which function hybrid choices.
Hyundai’s push for electrical automobiles continues with the introduction of the U.S.-built 2025 Ioniq 5, the primary non-Tesla EV to come back outfitted with a Tesla-style NACS charging port. This innovation permits homeowners to entry 1000’s of Superchargers nationwide, enhancing the comfort of highway journeys. Moreover, deliveries of the three-row Ioniq 9 are set to start this spring, with an analogous charging port built-in.
Kia additionally posted its highest-ever Q1 gross sales, delivering 198,850 models—up 10.7% from the earlier yr. Gross sales of the Carnival soared by 53%, whereas the Telluride and Sportage noticed will increase of 17% and 11%, respectively.
Nevertheless, the efficiency of Kia’s electrical automobiles was much less favorable this quarter. Gross sales of the EV9 dipped from 4,007 models in Q1 2024 to three,756 models this yr, reflecting a 6.2% lower. The EV6 additionally skilled a drop, with 3,738 models bought, down from 4,059 in the identical quarter final yr, representing an 8% decline.
Manufacturing of the EV9 slowed final yr attributable to stricter battery sourcing rules beneath the IRA, main Kia to restrict manufacturing till it may alter its sourcing to fulfill qualification requirements. It’s now starting to ramp up manufacturing. Moreover, a number of EVs throughout the Hyundai Motor Group have confronted Built-in Charging Management Unit (ICCU) failures, inflicting a number of remembers, though it stays unclear if these points impacted manufacturing.
Plans for the EV6 and EV9 to entry Tesla Superchargers with an adapter had been delayed, which could have led some shoppers to carry off on buying. Nevertheless, the 2025 variations will include the NACS charging port pre-installed, eliminating the necessity for an adapter.
Regardless of the latest power in gross sales of electrified automobiles from each Hyundai and Kia, a major hurdle lies forward. The Trump administration’s proposed 25% tariffs on all automobile parts and imported fashions are anticipated to take impact this week, until last-minute concessions are made. Almost 30% of the components within the U.S.-made Ioniq 5 come from Korea, in response to the Nationwide Freeway Site visitors Security Administration.
If the tariff plans proceed as scheduled, costs are more likely to rise, doubtlessly impacting gross sales within the brief time period. You probably have any ideas or insights, attain out to the creator at Suvrat.kothari@insideevs.com.
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