SEOUL, July 10 (AJP) - Hyundai Motor and its affiliate Kia notched a record 11 percent combined market share in the United States over the first five months of 2025, sidestepping the immediate effects of steep American tariffs by holding vehicle prices steady and relying on preexisting inventory.
The two South Korean automakers sold a combined 752,778 vehicles from January through May, up from 10.5 percent in the same period a year earlier, according to data released Thursday by Wards Intelligence, an automotive research firm.
Hyundai accounted for 5.8 percent of the U.S. market with 400,116 vehicles sold, while Kia held 5.2 percent with 352,662 units. The companies maintained steady month-on-month growth, increasing their market share from 10.5 percent in January to 10.8 percent by April, despite a 25 percent U.S. tariff on foreign-made automobiles imposed earlier this year.
The gains were driven in part by a strategic freeze on vehicle prices in the American market, a move made possible by tapping into inventories built up before the tariffs took effect.
However, industry analysts warn that the impact of the trade barriers will begin to weigh on financial performance in the second quarter.
Korea Investment & Securities estimates Hyundai will incur 803 billion won (approximately $582 million) in tariff costs during the second quarter, with Kia projected to face 723 billion won (around $524 million) in related expenses.
KB Securities estimates that Hyundai’s annual tariff-related costs could reach 3.1 trillion won starting from vehicles sold after mid-May.
Other automakers, including Toyota and Ford, have begun raising vehicle prices in the U.S. to offset the higher costs. Toyota increased the average selling price of U.S. vehicles produced after July 1 by $270, while Ford raised prices on vehicles manufactured in Mexico and sold in the U.S. in May.
While Hyundai and Kia have so far resisted similar price hikes, analysts believe it is only a matter of time before the cost burden is passed on to consumers.
reporter
Candice Kim
candicekim1121@ajupress.com
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