Hyundai dealerships are modernizing as the brand looks to build upon its growth in the EV market this year. Hyundai’s IONIQ 5 is already a top seller at some dealers. With new electric models rolling out, like the three-row IONIQ 7 SUV, Hyundai has the “whole gamut covered.”
Hyundai’s IONIQ 5 is a top-selling EV
“If I had to describe Hyundai right now in two words, it would be growth and investment,” Kevin Reilly, chairman of the Hyundai National Dealer Council, explained (via Automotive News).
Reilly said that after selling his first Hyundai in 1987, he’s watched the brand evolve over the years. And right now, Hyundai is in a “period of substantial year-over-year growth.” Hyundai closed out the year on a strong note with its 17th consecutive month of YOY sales growth.
The South Korean automaker sold nearly 269,000 EVs last year as Hyundai extended its position in the market. Hyundai’s dedicated EVs, including the IONIQ 5, are quickly becoming top sellers.
Hyundai expects the growth to continue, with around 300,000 EVs sold this year. In the US, Hyundai’s largest sales market, the automaker (including Kia), blew past Ford and GM to become the second top-selling EV brand in 2023.
Hyundai’s IONIQ 5 electric SUV was the sixth top-selling EV in the US last year, climbing from seventh the year before.
Investing in EV growth
Now, dealers are doubling down with “healthy demand for EVs,” according to Reilly. Reilly, whose dealership is about two miles outside of Washington DC, sees around 20 to 25% EV sales mix, with the IONIQ 5 as the top-selling electric model.
The dealership is in a “very EV-centric market,” says Reilly, compared to the average sales mix of around 7.5% to 8%.
Although the spike in EV sales may not stay on its current slope forever, Reilly predicts “it’s going to be still a rapid adoption.” As Reilly explained, “Once a customer gets in an EV and starts driving it, there’s almost no chance they’ll go back to an ICE vehicle.”
Hyundai and its dealers are investing heavily “across every aspect,” Reilly said. The company marked its one-year anniversary since breaking ground on its $5.5 billion EV and battery mega plant in Georgia in late October. Hyundai said 99.9% of the foundation work was complete.
The automaker expects it to become operational ahead of schedule as soon as the third quarter. Once complete, the facility will build six models across the Hyundai, Kia, and Genesis brands.
Hyundai’s new facility will have the capacity to build around 300,000 EVs annually as the brand looks to extend its leadership in the market.
One of the biggest reasons for the expected growth is Hyundai’s first three-row electric SUV – the IONIQ 7. Hyundai’s IONIQ 7 will sit alongside the Palisade as a “family-mover.” Reilly expects “that car will do extremely well for families who want an EV but still need the room to manage the family and their daily needs.”
The IONIQ 7 will round out Hyundai’s lineup with the “whole gamut covered,” according to Reilly.
Electrek’s Take
As Hyundai continues investing in the future, rivals like Ford and GM have moved in the opposite direction, opening the door for the brand to extend its lead.
Hyundai is accelerating the development of its first EV and battery plant in the US as it looks to take advantage of a growing market with unique, dedicated electric vehicles.
Ford is pushing back around $12 billion in EV spending, while GM already delayed the production of its Chevy Equinox, Silverado RST, and GMC Sierra Denali EVs.
What do you guys think? Can Hyundai extend its lead over other legacy automakers this year?
Are you ready to join the movement? Hyundai is offering some of its best deals so far on its top-selling EVs, including up to $15,000 off the IONIQ 5. You can use our link to find great deals on the 2024 Hyundai IONIQ 5 at a dealer near you today.