Hyundai Motor and Kia, the South Korean automakers, remain optimistic about the strong demand for electric vehicles (EVs) in the United States, despite concerns over inflation and rising interest rates. Senior executives from both companies expressed their confidence ahead of the Los Angeles Auto Show.
Jose Munoz, Hyundai’s Global Chief Operating Officer, stated that the company’s EV sales have been steadily doubling year after year. He emphasized their commitment by mentioning the ongoing investments in their battery electric plant in Savannah, Georgia, which they plan to have ready by October next year. Munoz pointed out that their investments are not just on track but have been accelerated, indicating their determination to meet the increasing demand.
Kia, which is 34% owned by Hyundai, shares a similar outlook. Steven Center, Chief Operating Officer at Kia America, assured that despite the challenging economic climate, they are still experiencing organic growth. Center also mentioned that Kia is expanding into additional segments to further fuel the growth of EVs.
Although inflation and high interest rates have pushed up car prices, resulting in increased costs for consumers, the average price for a new EV in the U.S. has actually decreased from over $60,000 in January to just over $50,000 in September. This price reduction, along with Tesla’s efforts to drive sales through price cuts, contributed to a 50% increase in EV sales for the third quarter compared to the previous year.
While Tesla CEO Elon Musk and other industry giants have expressed caution and highlighted supply-chain challenges, Hyundai and Kia remain confident in the sustained demand for EVs. They believe that as early adopters continue to embrace EVs, there is a growing market of newly interested consumers that will drive demand in the future.
1. Are Hyundai and Kia optimistic about the demand for electric vehicles in the U.S.?
Yes, senior executives from both companies have expressed their optimism regarding the strong demand for electric vehicles in the United States.
2. How are Hyundai and Kia responding to the increasing demand for EVs?
Hyundai and Kia are actively investing in the expansion of their electric vehicle production to meet the growing demand. They are accelerating their plans and pushing to have their battery electric plant in Savannah, Georgia, ready by October next year.
3. How have EV sales been impacted by inflation and high interest rates?
Despite concerns over rising costs due to inflation and interest rates, the average price for a new EV in the U.S. has actually decreased. This, along with price cuts by Tesla, has driven a 50% increase in EV sales for the third quarter compared to the previous year.
4. Do Hyundai and Kia anticipate sustained demand for EVs in the future?
Yes, Hyundai and Kia believe that as more consumers become interested in EVs, there will continue to be strong demand for electric vehicles in the future. They are confident in the long-term growth potential of the EV market.