Hyundai Motor sets an aggressive sales target at 1 million vehicles per year in the U.S. market by 2025 amid the slow growth of the U.S. vehicle market. Compared to last year’s delivery of 710,000 units, the automotive manufacturer sets to close the gap between its Japanese rivals.
Hyundai Motor America CEO Jose Munoz expressed that the target sales is not just a hype. According to Munoz, with the company’s performance, Hyundai Motor can better compete with Japanese counterparts in the U.S. market.
The automaker’s new luxury vehicle from its Genesis brand, as well as the company’s new line of SUVs, will be a big help for the manufacturer to gain momentum in the otherwise declining market. During a press conference at Hyundai Motor America headquarters, Munoz urged the company to be proud that they are ahead of domestic and the strong Japanese competitors in the field.
Hyundai Motor America sold 710,007 vehicles last year in the U.S. Market, which is a 4.7 percent increase from the earlier year. According to research firm Edmunds, the U.S. market’s total sales last year fell by 1.1 percent to 17.08 million vehicles due to a slow global economy and global protectionism.
The U.S. subsidiary stated that it would continue to strengthen its SUV lineup to boost car sales, to sell 728,000 units in 2020.
Kia Motors, Hyundai’s sister company, sold 615,338 cars last year. An increase of 4.4 percent in sales.
CEO Jose Munoz referenced the growth of sales from the more balanced combination between SUVs and sedans. The Kona, Palisade, and Venue will complete the full SUV lineup along with the new version of Tucson, which will return to the U.S. market after five years.
He said that the company raised SUV’s sales share from 44 percent a year earlier to 55 percent. The increase contributed to a 32 percent growth year-on-year in SUV retail sales, reassuring the company it is on the right track.
In 2019, 59 percent of the total luxury vehicle market sales in the U.S. came from SUVs. Industry experts foresee that by 2025, the sector will increase to consist of 65 percent in the total market shares.
Hyundai Motor ranked seventh-largest carmaker in terms of units sold in U.S. as of last year. General Motors (G.M.) was first on the list, followed by Ford, Toyota, Fiat Chrysler, Nissan Mitsubishi then Honda.