Hyundai and Kia achieved record-high July sales in the United States, with their combined performance highlighting the growing preference for fuel-efficient vehicles over battery-electric models. According to the latest automotive industry data, Hyundai and Kia sold a combined 165,284 vehicles in the United States last month, up 5% from a year earlier, with both brands setting all-time July records. Hyundai, including Genesis, moved 89,427 units, while Kia posted 75,857 units, its best July ever and another step toward what would be a fourth straight annual sales record. The engine behind this growth was obvious - combined hybrid sales soared 52.2% to 43,727 units, with Kia's hybrid volume alone jumping 76.6% and Hyundai's climbing 35%, as the Tucson, Elantra, and Sportage did much of the heavy lifting.
While Ford famously abandoned the conventional car space, Hyundai and Kia are seeing surprisingly solid sales of their sedans and hatchbacks this year. The entry-level Elantra had an excellent month with 39% better sales than the same month last year, going from 12,354 to 17,115 units and bringing total yearly sales to 96,954 units, an 11% increase over the previous year. The bigger Sonata sold 5,218 units in July, an 18% increase over July 2025, with total sales reaching 42,275 units, a 13% increase over last year. Kia's family-sized K5's monthly sales increased by 14% from 5,879 to 6,694 units, while the K4 replacement for the Forte saw mixed results with monthly sales slightly up to 12,094 units but total 2026 sales slightly down at 85,673 versus 86,723 last year.
While hybrid demand surged, Hyundai Motor Group's combined EV sales plunged 40.5% to just 7,210 units in July, with Hyundai's electric sales falling 46.1% and Kia's dropping 27.7%. This dramatic decline reflects a broader market trend where 92% of Americans still would not buy an EV despite hundreds of models available, massive consumer-facing federal and state subsidies, and back-end ZEV credit subsidies. The only really successful EV in the mix from all three companies is the Hyundai Ioniq 5, which enters its sixth year of sales in December with no second-generation being mentioned. When the federal EV tax credit expired last fall, demand for pricey battery-electric models cooled almost immediately to roughly 5% annualized market share.
In the subcompact SUV segment, Kia nearly doubled Seltos sales from 4,917 units to 8,807 monthly, with total 2026 sales reaching 41,311 units, a 38% increase over the previous year. Over at Hyundai, the Venue was slightly up for the month and for the year, with a 12% increase to 2,879 units in July, and a 3% increase to 18,504 for the year. However, the Kona was slightly down with monthly sales dropping 4% to 6,040 units and yearly sales down 8% to 42,209 units, though it still made up a good chunk of the brand's sales. SUVs remain the heavy hitters in the car market, but Hyundai and Kia are showing that plenty of customers still want sedans and hatchbacks.
To arrest the decline, Hyundai plans to launch 26 new products by 2030, including new models, facelifts and upgrades. In FY27, the company is set to introduce two new nameplates, one of which will be an electric vehicle (EV). The company also began production at its new Talegaon facility last fiscal, which will initially ramp up capacity to 170,000 units annually, with plans to expand it further to 250,000 units a year. With this new plant, the company's capacity will cross 1 million units per year in the next few years. The company has lined up eight hybrid models and 5 EV models to be launched by 2030 in a bid to regain market share from Tata and Mahindra, which lead the EV market. Meanwhile, Kia's strong performance was driven by the expansion of EV and hybrid sales, with the company benefiting from strong demand in these segments as the automotive industry continues its transition toward electrification.
