SEOUL – South Korea’s Hyundai Motor Co and its affiliate Kia Corp are setting ambitious goals for 2025, aiming for a 2% increase in their combined global sales to reach 7.39 million vehicles. This comes after the automakers reported a slight decline in 2024 sales, falling short of their targets.
The two brands, collectively ranked third globally in vehicle sales, managed to sell 7.23 million units in 2024—a 1% drop compared to 2023. While strong sales in the United States helped balance out some of the decline, weaker demand in Europe and their home market of South Korea proved challenging. Looking ahead, both companies are preparing for a potentially turbulent 2025, with concerns about a slowing global economy and political instability in key markets like the U.S. and South Korea.
In South Korea, consumer sentiment plummeted in December 2024, marking its sharpest decline since the COVID-19 pandemic. This downturn was fueled by political instability, including President Yoon Suk-yeol’s controversial declaration of martial law and his subsequent impeachment. Meanwhile, in the U.S., tensions are mounting as incoming President Donald Trump has threatened to impose a blanket 10% tariff on all imported goods, which could impact the automotive sector significantly.
To bolster its position, Hyundai has begun operations at its new factory in Georgia, USA, launched in 2024. This facility is crucial for qualifying Hyundai vehicles for tax credits under the Biden administration’s policies, although Trump has expressed intentions to eliminate such incentives, adding an extra layer of uncertainty.
Despite these challenges, Hyundai and Kia are committed to their growth targets for 2025, though analysts, such as Kim Sung-rae from Hanwha Investment & Securities, caution that achieving these goals may prove difficult given the ongoing macroeconomic uncertainties, particularly in Europe and emerging markets. Additionally, the two South Korean brands are facing mounting competition from Japan’s Honda and Nissan, which are in talks to form the world’s third-largest automotive group by 2026.
As the global automotive market becomes increasingly competitive, Hyundai and Kia will need to navigate these headwinds carefully to meet their sales objectives and maintain their position as leaders in the global car industry.
