The future is looking bright for Hyundai and Kia.
2020 was a challenging year, to say the least. Factory closures caused the automotive industry to come to a grinding halt amid the pandemic. Thankfully, many auto manufacturers have been making remarkable recoveries. Kia, for example, set several monthly sales records, with the popular Telluride and Sportage SUVs helping the Korean automaker achieve its best September retail sales.
Hyundai's SUV retail sales also increased thanks to the popular Santa Fe and Palisade. Both manufacturers ended 2020 on a high, as Hyundai and Kia's combined US market share increased more than any other major automaker last year. Looking ahead, Hyundai and Kia are optimistic about their future sales in 2021.
For the last two years, Hyundai and Kia's global sales have declined. Last year, the manufacturer's combined global sales dipped by 12 percent to 6.35 million vehicles. This was the lowest in a decade and 20 percent less than Hyundai and Kia's peak sales in 2015.
Despite this, Automotive News Europe reports that the Korean automakers are confident the company's combined global vehicle sales will rise by 12 percent in 2021. That's a bold prediction considering the automakers have failed to achieve predicted sales targets for the last six years. However, analysts believe it's a realistic target since Hyundai's shares increased by eight percent this week.
While the high demand for SUVs helped bolster Hyundai and Kia's sales last year, investors are confident the company's EV sales will spike in 2021. The Hyundai Kona Electric has already been a strong seller for the automaker, surpassing 100,000 units worldwide last summer after being in production for just over two years.
Hyundai is also preparing to launch its new Ioniq electric sub-brand starting with the Ioniq 5 inspired by the Hyundai 45 concept, while Kia is planning to launch seven new EVs by 2027, the first of which will debut this year.