Hyundai Motor Group is narrowing the distance to Ford in the United States, as robust hybrid sales make a third-place ranking plausible. In both July and August, the Korean manufacturer and its subsidiary Kia sold more units than Ford, accumulating a surplus of over 15,000 vehicles across the two months.
Closing the gap
This performance allowed the Korean brands to maintain their lead over Ford for the second month in a row. Over July and August combined, Hyundai and Kia moved 343,689 units, outpacing Ford’s 327,896 vehicles for the two-month period.
However, for the third quarter, the Korean manufacturers totaled 506,200 vehicles, trailing Ford by a narrow margin of 1,195 units. According to Cox Automotive, the annual race remains tight, with the group holding an 11.8 percent share from January through August against Ford’s 12.2 percent. A quarterly victory would have marked a milestone, but overtaking Ford for the full year requires Hyundai to sustain its gains through the remaining months.
Hyundai’s strategy has relied heavily on hybrid models, which attract buyers looking for improved fuel efficiency without the need for charging stations.
Regulatory changes and Detroit’s advantage
New US regulations could make Hyundai’s progress more difficult. The Trump administration has weakened fuel economy standards, reducing the 2031 industry target from 50.4 mpg to 34.9 mpg. These revised standards apply to model years 2027 through 2031 and will go into effect in late November.
Since compliance is based on a manufacturer’s entire fleet, looser targets lessen the need to sell more electric vehicles to balance out less efficient gas-powered models. ‘Electric vehicles face steep costs for batteries and research, which often cut into profits,’ explained Lee Ho-geun, an automotive engineering professor at Daeduk University. ‘With relaxed fuel economy requirements, traditional US automakers can prioritize higher-profit vehicles like large SUVs and trucks, strengthening their market position in key segments.’
Hybrids continue to play a key role.
The next test
Hyundai intends to expand its hybrid success with extended-range electric vehicles, which combine an electric motor for driving with a gasoline engine to generate power. The Santa Fe EREV will arrive in the US in early 2027, produced at Hyundai’s Alabama facility. A Genesis GV70 EREV will follow, either shipped from South Korea or built domestically.
Hyundai aims for a combined range of roughly 965 kilometers for the Santa Fe EREV and over 1,030 kilometers for the Genesis model. These vehicles could attract buyers interested in electric driving but hesitant about charging access. However, their impact on sales will hinge on pricing and how well consumers accept them.
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