Hyundai, Kia Zip Into The U.S. Car Market's Fast Lane

South Korean automakers Hyundai and Kia already make some of America’s most popular cars, particularly in the hybrid category.

Shares of Hyundai Motor have gained 85% since the end of 2022, while those of Kia have more than doubled.

Now, geopolitics is helping them be even more competitive in the growing EV market, Jacky Wong reported for the Wall Street Journal.

Investors in the companies, which have designs and some ownership in common, have found themselves in the fast lane as a result. Shares of Hyundai Motor have gained 85% since the end of 2022, while those of Kia have more than doubled.

Hyundai is Kia’s largest shareholder with a 34% stake. The two companies reported record earnings last year, with both increasing their operating profits by more than 50% from 2022.

The US has been the major growth driver for both companies as they have steadily increased their market share.

Hyundai and Kia together have more than 10% of the US market, according to Goldman Sachs. Their combined revenue in North America has doubled in the past five years alone.

With lucrative sport utility vehicles such as the Tucson and the Santa Fe, Goldman estimates that the US is their most profitable market.

Nearly 8% of Hyundai’s cars sold in the US last year were EVs. That proportion was even higher at 16% in more EV-friendly Europe. But they have also been offering a more balanced portfolio of products: Around 10% of Hyundai’s cars sold in the US were conventional hybrids.