Hyundai Motor Manufacturing Alabama (HMMA) plant in the United States. (Photo courtesy of Hyundai Motor Company)
SEOUL, June 29 (Korea Bizwire) — Hyundai Motor and Kia have climbed to a record-high 11% market share in the U.S. auto market for the first five months of this year, bolstered by proactive inventory strategies and surging hybrid sales. But industry analysts warn that growing cost pressures and looming tariff hikes could cloud prospects for the rest of 2025.
According to data released by Wards Intelligence on Saturday, the two South Korean automakers sold a combined 752,778 vehicles in the U.S. between January and May, up from 10.5% market share a year earlier. Hyundai accounted for 5.8% and Kia 5.2%.
This steady monthly climb—from 10.5% in January to 11.6% in May—marks the companies’ most consistent rise in U.S. market share to date, driven in part by what analysts describe as well-timed responses to tariff uncertainties.
Kia’s major U.S. models and a view of its Georgia plant. (Photo courtesy of Kia)
In April, U.S. consumers rushed to purchase vehicles in anticipation of price hikes, a wave of “panic buying” that Hyundai and Kia capitalized on. Their April sales surged 16.3%, significantly outperforming the industry average of 11.1%. Hybrid models were particularly strong, with sales jumping 65.8% year-on-year to 26,134 units.
An industry source credited the group’s strategic inventory buildup—prior to potential tariff impacts—as a key driver of this momentum, adding, “Strong hybrid lineups also helped Hyundai and Kia meet growing U.S. demand in that segment.”
Even in May, as overall U.S. auto sales slowed, Hyundai and Kia managed to outperform with a 6.7% year-on-year increase, more than double the industry-wide growth of 2.5%. Promotions and restrained pricing helped preserve the momentum.
A view of Tustin Hyundai, a Hyundai dealership located in California, USA. (Photo courtesy of Hyundai Motor Group)
However, the outlook for the second half of the year is less certain. Analysts note that “non-tariff inventory” built in anticipation of price shifts is depleting, and price hikes appear inevitable.
Ford has already raised prices on some Mexico-produced models, and Toyota recently announced a $270 average price increase in the U.S. starting next month. Hyundai and Kia are expected to monitor competitor moves before adjusting prices.
Further compounding uncertainty is the possibility of higher U.S. auto tariffs. President Donald Trump, speaking on June 12, hinted at raising the existing 25% tariff on imported vehicles, stating, “The higher the tariff, the more likely they are to build factories here.”
While Hyundai and Kia’s first-half performance underscores their strategic agility in a volatile market, the coming months may test how well they can balance cost pressures, trade policy shifts, and competitive pricing in one of their most critical export markets.
Kevin Lee (kevinlee@koreabizwire.com)
