Hyundai, Kia Eye 7.5M Sales Record in 2026

South Korean automotive giants Hyundai Motor Co and Kia Corp have announced an ambitious plan to increase their combined global sales by 3.2% in 2026. The companies are targeting a total of 7.51 million vehicles after narrowly missing their performance goals in 2025.

Currently ranked as the world’s third-largest automotive group, the pair sold 7.27 million units last year. This represented a modest 0.6% increase from 2024. The growth was largely driven by a surge in hybrid demand in the United States, which helped offset a dip in electric vehicle (EV) sales following the expiration of government subsidies.

Hyundai Records Fifth Straight Year of U.S. Growth

Hyundai continues to lean heavily on the North American market, which now accounts for roughly 40% of its total revenue. In 2025, the manufacturer celebrated its fifth consecutive year of record-breaking retail sales in the U.S.

Key 2025 Performance Metrics:

• Electrified Vehicle Mix: 30% of total retail sales.

• Hybrid Sales Growth: 36% increase.

• EV Sales Growth: 7% increase.

For 2026, Hyundai’s individual sales goal is set at 4.16 million units. While this is slightly lower than their initial 2025 target, it exceeds their actual 2025 output of 4.14 million vehicles.

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Strategic Shift: New Plants and Hybrid Competition

To meet these targets, the automakers are shifting their manufacturing strategy to navigate high tariffs and shifting consumer preferences.

1. Production Expansion: Hyundai is launching an EV-dedicated facility in Ulsan and the Pune plant in India.

2. Localizing Supply: By 2030, Hyundai aims to manufacture over 80% of its U.S.-bound vehicles on American soil to bypass trade barriers.

3. The Hybrid Battle: Analysts note that the companies must scale up U.S.-based hybrid production to compete with Toyota, which currently dominates nearly 50% of the American hybrid market. Hyundai presently holds a 13% share.

Kia’s Path to 2026 Growth

Kia is taking a different approach by focusing on local production of its high-demand models. Industry experts believe Kia has significant room for growth in 2026, particularly with the updated Telluride model.

Because the Telluride will be produced and sold locally in the United States, it will remain unaffected by automotive tariffs, allowing Kia to maintain competitive pricing. Additionally, Kia is looking to strengthen its presence in the European market by increasing its EV volume.