Hyundai and Kia are starting the new year on a strong note, posting record-breaking January sales in the US. The Korean automakers have built upon their success from last year, with Hyundai selling over 55,600 vehicles in the first month of 2026, up 2% from the previous year.
Kia America followed suit, selling an impressive 64,502 vehicles, a 13% increase from January 2025. The growth in sales can be attributed to growing demand for electrified vehicles, including new hybrid SUVs.
Hyundai's all-electric vehicles, however, have seen a different trend, with the IONIQ 5 seeing a decline in sales due to the expiration of the $7,500 federal tax credit at the end of September. Despite this, Kia's EV6 and EV9 models have also been affected by the same factor.
The market for electric vehicles is expected to reset as buyers wait for new incentives and discounts. In response, Hyundai has cut prices on its 2026 IONIQ 5, making it one of the few EVs available starting under $35,000.
Kia, on the other hand, has been offering over $10,000 in customer cash discounts across its full lineup of electric vehicles. With new hybrid models like the Palisade and Santa Fe now available, Hyundai and Kia are confident that their sales will continue to grow.
As the market evolves, it's clear that these Korean automakers are committed to providing consumers with affordable and innovative electric vehicle options.
The growth in demand for electrified vehicles is a positive trend for Hyundai and Kia, but the expiration of tax credits has had a significant impact on their sales figures. As the market continues to evolve, it will be interesting to see how these automakers adapt to changing consumer behavior.
