Hyundai, Kia target 3.2% vehicle sales growth in 2026 after missing 2025 targets

SEOUL, Jan 5 : South Korea's Hyundai Motor Co and affiliate Kia Corp aim to grow their combined global vehicle sales by 3.2 per cent to 7.51 million vehicles in 2026, after narrowly missing their sales targets in 2025. The automakers, which together rank third in global vehicle sales, sold combined 7.27 million vehicles in 2025, up 0.6 per cent from 2024 as U.S. hybrid vehicle sales offset sluggish EV demand following the end of subsidies last September. Hyundai, which generates about 40 per cent of its revenue from the U.S. market, has benefited from growing demand for hybrid vehicles. HYUNDAI ENJOYS 5TH YEAR OF RECORD U.S. SALES The company said in a statement that it posted a fifth year of record retail sales in the United States in 2025, adding that electrified vehicles accounted for 30 per cent of its retail mix, with hybrid sales increasing 36 per cent and EV sales growing 7 per cent. Kia, meanwhile, noted it focused on expanding hybrid vehicle sales in the United States and strengthened its position in Europe through higher EV volumes, despite an uncertain industry environment impacted by U.S. tariffs. For this year, Hyundai said it plans to optimize profit by launching new electrified models and rolling out advanced production facilities, including an EV-dedicated plant in Ulsan and the Pune plant in India, as it responds to shifting regional demand. Hyundai's 2026 sales target was set at 4.16 million units, lower than its 2025 target of 4.17 million vehicles, but higher than its 2025 annual sales result of 4.14 million units. HYUNDAI NAVIGATES CHALLENGING ENVIRONMENT, ANALYST SAYS Korea Investment & Securities analyst Kim Chang-ho said Hyundai's target this year appears to reflect expectations that the business environment will be challenging. Kia, in contrast, appears to have room for growth, as the updated Telluride model is set to be produced and sold locally in the United States, free from U.S. auto tariffs, Kim said. Analysts said expanding U.S.-based hybrid production would be key for Hyundai and Kia to better compete with Toyota, the top hybrid seller in the U.S., as the Japanese rival produces several hybrid models there. Toyota held nearly 50 per cent of the U.S. hybrid market as of November last year, while Hyundai Motor had 13 per cent, according to S&P Global data. In September, Hyundai Motor said it aimed to produce more than 80 per cent of the vehicles it sells in the U.S. in America by 2030 due to U.S. tariff policies.