The Koreans' American Battle: In May 2017, Kia Outsold Hyundai for the First Time Ever

Timothy Cain
by Timothy Cain

May 2017 was not a particularly healthy sales month for either of South Korea’s two major automakers in the United States. Including Hyundai’s Genesis spinoff brand, the Hyundai-Kia Automotive Group declined 12 percent, year-over-year — a loss of more than 15,000 sales for the trio of Korean brands compared with May 2016.

Korea’s U.S. auto market share thus fell to 7.8 percent in May 2017, a drop of a full percentage point. In a market that’s seen sales fall 2 percent overall through the first five months of 2017, total Hyundai-Kia Automotive Group sales are down 7 percent following record annual volume in 2016.

Hyundai and Kia both underperformed the market in May, just as they’re both underperforming the market through the first five months of 2017. But by an altogether different standard, one member of the group will be pleased with May’s U.S. sales results.

In May 2017, for the first time in the brands’ U.S. sales history, Kia sold more new vehicles than Hyundai. Kia outsold Hyundai. Yes, it was the first time. But it surely won’t be the last.

VehicleMay 2017May 2016% Change2017 YTD2016 YTD% ChangeHyundai Elantra16,40722,168-26.0%86,95573,89217.7%Hyundai Sonata12,60515,879-20.6%66,76892,547-27.9%Kia Optima10,78910,895-1.0%48,46551,887-6.6%Hyundai Santa Fe9,84414,732-33.2%47,42639,09921.3%Kia Forte11,8019,91019.1%47,35943,5728.7%Kia Soul10,52113,706-23.2%43,62358,299-25.2%Hyundai Tucson10,6007,36943.8%41,70735,47117.6%Kia Sorento10,41311,914-12.6%40,50546,960-13.7%Kia Sportage7,0018,568-18.3%28,08733,680-16.6%Hyundai Accent5,7735,4326.3%27,48736,191-24.1%Kia Sedona3,5615,170-31.1%12,99818,297-29.0%Kia Niro2,660——10,488——Hyundai Veloster8001,965-59.3%7,27111,223-35.2%Genesis G801,355——6,390——Kia Rio1,1872,241-47.0%5,72210,130-43.5%Hyundai Ioniq1,827——3,475——Kia Cadenza52846812.8%2,1532,553-15.7%Genesis G90397——1,916——Hyundai Azera326368-11.4%1,5512,233-30.5%Hyundai Genesis762,970-97.4%89014,989-94.1%Kia K9004654-14.8%193377-48.8%Hyundai Equus1123-99.2%17904-98.1%Total Genesis1,7528,306Total Kia58,50762,926-7.0%239,593265,755-9.8%Total Hyundai58,25971,006-18.0%283,547306,549-7.5%Hyundai-Kia Automotive Group118,518133,932-11.5%531,446572,304-7.1%

This victory didn’t necessarily place Kia in a celebratory mood. Kia’s monthly sales release featured a single sentence, only 33 words in length, that highlighted the Forte’s all-time monthly record of 11,801 sales.

It’s no wonder: May 2017 sales of the Rio, Optima, K900, Sportage, Sorento, Sedona, and Soul all decreased compared with May 2016. Subtract from the equation the Kia Niro — which wasn’t on sale at this time last year — and Kia’s U.S. volume was down 11 percent last month. This is hardly the time to break out the party hats.

But Kia’s 58,507-unit May 2017 total, while 5-percent lower than the brand’s three-year May average, was still greater than Hyundai’s — a fact confirmed by Edmunds analyst Jessica Caldwell.

Only 248 units greater.

But greater.

Harming Hyundai’s total, of course, are 1,752 sales that would have been attributed to Hyundai in the past are now on Genesis Motors’ ledger. Even with Genesis G80 and G90 sales factored in, total Hyundai Motor America sales plunged 15 percent.

Meanwhile, more specifically, the Hyundai brand sans Genesis lost nearly 13,000 sales in May 2017, year-over-year. That’s despite the addition of the Ioniq’s 1,827 sales, without which the Hyundai brand would have been down by more than a fifth.

Blame is spread far and wide, but it’s largely a passenger car problem. The Elantra and Sonata, Hyundai’s two most popular products, combined for 29,812 May 2017 sales. That’s down 22 percent from 38,047 units in May 2016.

How quickly have times changed? Hyundai sold 45,284 Elantras and Sonatas in the U.S. in May 2013.

Making matters worse were huge declines from the Hyundai Veloster and discontinued Hyundai Genesis plus a 33-percent drop in total Santa Fe sales.

Hyundai wasn’t short on reasons to minimize the brand’s poor overall performance in the United States in May. First, the Hyundai Tucson recorded its best month in the nameplate’s 13-year history. Second, Hyundai said retail volume was up 10 percent, year-over-year, and the brand’s fleet volume accounted for fewer than one-in-ten May sales. The Ioniq is gaining momentum, as well.

And yet one industry insider noted to TTAC that, while this was the first time Kia ever outsold Hyundai on a total basis, Kia’s ability to score a victory over Hyundai on the retail front is old news.

Year-to-date, Hyundai’s 283,547 sales places America’s traditional Korean No.1 some 44,000 sales ahead of Kia. It’s unlikely therefore — in part because of the temporary blip in Hyundai fleet volume; in part because of the size of the lead — that Kia will outsell Hyundai in America over the course of this year.

But this sibling rivalry will continue to display interesting results, and perhaps Kia can do in America what Kia has already done in the pair’s home market: outsell Hyundai on an annual basis, too.

Hyundai considered that outcome to be a “ temporary phenomenon.”

Timothy Cain is a contributing analyst at The Truth About Cars and Autofocus.ca and the founder and former editor of GoodCarBadCar.net. Follow on Twitter @timcaincars.

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  • S197GT S197GT on Jun 02, 2017

    If you want a Sonata Limited it better be the 2.4 NA engine. There are very few 2.0 turbos around my major metropolitan area. Also, if you can find a turbo it you better want it in black or white. If you want an Elantra Sport it better be a manual there are no autos. Yeah, yeah, you guys won't care but a manual is no-go for my wife. She liked the Sonata Limited Turbo... but the dealership we went to only had one... in white. Nope. If the rest of the model lineup is as limited... there's your problem! (or part of it)

    • Xtoyota Xtoyota on Jun 02, 2017

      After 13 years of only buying Hyundai products (no quality problems) I purchased a 2017 Honda CRV Touring.....fully loaded AWD MSRP under $35K. Kia and Hyundai had nothing even close as far as spec's we wanted

  • HotPotato HotPotato on Jun 05, 2017

    Yep, Hyundai sold way more Sonatas in 2013. In 2013, they had legitimately exciting styling, classy interiors, and a lower price than the Japanese. In 2017, they have anodyne styling inside and out, and no price advantage.

  • Jpolicke In a communist dictatorship, there isn't much export activity that the government isn't aware of. That being the case, if the PRC wanted to, they could cut the flow of fentanyl down to a trickle. Since that isn't happening, I therefore assume Xi Jinping doesn't want it cut. China needs to feel the consequences for knowingly poisoning other countries' citizens.
  • El scotto Oh, ye nattering nabobs of negativism! Think of countries like restaurants. Our neighbors to the north and south are almost as good and the service is fantastic. They're awfully close to being as good as the US. Oh the Europeans are interesting and quaint but you really only go there a few times a year. Gents, the US is simply the hottest restaurant in town. Have to stand in line to get in? Of course. Can you hand out bribes to get in quicker? Of course. Suppliers and employees? Only the best on a constant basis.Did I mention there is a dress code? We strictly enforce it. Don't like it? Suck it.
  • 1995 SC At least you can still get one. There isn't much for Ford folks to be happy about nowadays, but the existence of the Mustang and the fact that the lessons from back in the 90s when Ford tried to kill it and replace it with the then flavor of the day seem to have been learned (the only lessons they seem to remember) are a win not only for Ford folks but for car people in general. One day my Super Coupe will pop its headgaskets (I know it will...I read it on the Internet). I hope I will still be physically up to dropping the supercharged Terminator Cobra motor into it. in all seriousness, The Mustang is a.win for car guys.
  • Lorenzo Heh. The major powers, military or economic, set up these regulators for the smaller countries - the big guys do what they want, and always have. Are the Chinese that unaware?
  • Lorenzo The original 4-Runner, by its very name, promised something different in the future. What happened?
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