Key Takeaways
- Hyundai is expanding its hybrid lineup in response to waning demand for EVs globally and political uncertainty in America.
- The positive sales performance of Tucson and Santa Fe hybrids drives Hyundai’s strategy towards SUVs and hybrids.
- Hyundai is monitoring opportunities for hybrid expansion in anticipation of changes to the current IRA package post-election.
Hyundai is one of the automakers that has invested heavily in electrification. However, like other automakers, the Korean marque is now looking into hybrids – particularly expanding its electrified lineup in the US. The reason? Demand for EVs has been waning globally, plus the political uncertainty in America could affect how automakers do their business in the country.
In Hyundai’s latest sales report, the automaker has reported an increase in sales of the Elantra Hybrid, Tucson Hybrid, and Santa Fe Hybrid in the first half of 2024. Hyundai’s EV sales went up, too, albeit, there have been some contentions on this end. Overall, the company’s positive sales performance can be attributed to the strong demand for its SUVs and hybrid vehicles, which the automaker is now looking to capitalize on.
Political Uncertainty In America
With the Presidential election coming up in a few months, there is uncertainty looming among automotive businesses. The outgoing government has been tough on its emissions mandate, with several states announcing a full ban on ICE by the end of the decade, forcing automakers to the EV route.
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In comparison, former President Donald Trump, who is vying for reelection this year, has a different view on the matter. Along with his openness to Chinese auto manufacturers in America, Trump also addressed Biden’s so-called “EV mandate” or the Inflation Reduction Act (IRA), promising to end so on his first day if reelected.
Hybrids Are The Key
In response, Hyundai chief financial officer Lee Seung Jo said in an earnings call with analysts, as reported by Automotive News, that they are monitoring opportunities and plans for hybrid lineup expansion in preparation for a possible change in the current IRA package. “Even if Trump wins the election, we don’t expect the Inflation Reduction Act (IRA) to be scrapped,” Lee said.
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Hyundai’s current hybrid lineup in the US consists of five models. Apart from the three models mentioned above, there are also plug-in hybrid versions of the Tucson and Santa Fe. The Kona, Sonata, Palisade, and Santa Cruz are some key internal combustion engine models that have yet to get a hybrid version. Of note, the Palisade is reportedly getting a hybrid powertrain setup next year.
Source:
Automotive News
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