HYUNDAI: The best month of 2022
Hyundai Motor America had its best sales month of the year thanks to the strong performance of hyundai and Genesis crossovers and fuel-guzzling “green” offerings, but despite the improvement, supply continues to hold back volume.
Combined Hyundai and Genesis sales in the United States fell 12% to 67,597 in June. Still, Hyundai brand sales hit a 2022 high of 63,091 in the month. Second quarter combined volume fell 21% to 198,136. In the first half, the two brands reported combined sales of 396,535, a decline of 13%. Genesis sales are now up 19 consecutive months year-over-year, while Hyundai volume is down four consecutive months year-over-year.
Hyundai sales chief Randy Parker attributed the declines to the current shortage of microchips, saying it creates a “distorted” year-on-year comparison due to healthier inventory in the first half of 2021. .
“This time last year inventory levels really started to come down, and from that point on you’re going to start to see us getting a lot closer to [favorable] year-over-year comparisons,” Parker said.
Hyundai is not out of the woods yet. Hyundai Motor Co. chief operating officer Jose Munoz told reporters at a press conference this week at the company’s R&D center in Michigan that the third and fourth quarters would bring them closer to “a normal year”, but that they are still struggling with shortages of chips and other components. throughout the global supply chain. Munoz noted that rising interest rates will slow demand and bring them back to “an equilibrium,” but until then demand remains “strong.”
Brands: Hyundai, down 13% in June and down 23% to 184,191 in the second quarter; Genesis, up 11% to 4,506 in June and 26% to 13,945 in the second quarter.
Notable nameplates: Palissade, up 1.4% in the second quarter and 15% in June; Nexo, up 88% in the second quarter and 123% in June; Tucson, down 12% in the second quarter and up 7% in June; Santa Fe, down 6.4% in the second quarter and down 4.6% in June; Sonata, down 65% in the second quarter and 52% in June.
Incentives: $620 in the second quarter, down 71%, according to TrueCar.
Average transaction price: $37,415 in the second quarter, up 18%, according to TrueCar.
Fleet mix: June marked the sixth consecutive month that Hyundai recorded no fleet shipments.
Inventory: Hyundai started June with 19,000 units. Parker said he expects inventory to gradually improve in the second half.
Quotation: “When I started working in the company three years ago, we used around 70% passenger cars and 30% [crossovers]”, Parker said. “Now we’ve reversed the script and we’re executing almost 70% [crossover] and 30% passenger cars.”
Did you know? Hyundai issued a stop sale on Elantra and Accent in early June over issues with seatbelt pretensioners. Hyundai said that after fixing the models, the two sedans, especially the Elantra, came back strong in the second half of the month. The Accent, which will be discontinued for model year 2023ended June up 118% with sales of 2,088.