Kia America's First Half Of 2023 Sets New Sales Record

Kia America is continuing their hot streak, now covering 11 consecutive months of year-over-year sales increases. Growing SUV sales (up 25% collectively) are mostly responsible for Kia’s trajectory, and electrified (as opposed to all-electric) vehicles are also up significantly. I call out electrified versus electric because Kia’s electric vehicle (EV) sales are actually down, once again, significantly.

The main reason Kia’s EV sales are down in the US is the loss of federal tax incentives (for purchases) and consequently Kia’s pricing in general. Those two reasons may sound very closely related, and they are, but the vehicles’ advertised prices typically didn’t include tax incentives anyway because it was always the case that not everyone qualified for the tax incentive.

Basically, people look at the price and may not factor in incentives or rebates to their purchasing deliberations, unless perhaps they see them applied to the monthly payment/final price or if they happen to be familiar with the federal, state and local incentives that may be in effect, depending on income/taxes paid, location, the price of the vehicle, etc.

There are simply lower-priced EVs of similar capability and range that cost thousands less than the lowest price Kia (the Niro EV Wind), which currently goes for just under $40k. Still, that doesn’t mean that the Niro EV’s competitors can match its features. Regardless, that is perhaps the main thing hurting Kia’s US EV sales right now, that and high-interest rates on car loans/auto leases though that should be true of all manufacturers, but it compounds a bit for Kia, we might assume.

Let’s break down the numbers a bit. As I said, Kia’s SUVs are responsible for the majority of its sales growth with the diminutive Seltos seeing the most significant monthly sales increase at 7,449 units (a 171% increase monthly and at 52% year-over-year), the Sportage (Kia’s best selling SUV) with 12,862 units (a 24% monthly increase and at 52% year-over-year) and the Telluride and Sorento SUVs both seeing double-digit month-over-month and year-over-year growth.

In terms of non-SUV sales, Kia’s Carnival (80% month over/93% year over), Soul (45% month over/30% year over), Stinger (102% month over but -12% year over as the model is discontinued), and Forte (9% month over/22% year over) also contributed to Kia’s sales performance last month. Worth pointing out though is that all 4 of these non SUV model sales add up to about 28% of Kia’s June sales in the US, versus the approximately 53% of total June sales that the 4 SUV models represent.

Now let’s look at Kia’s EV and electrified sales generally for June and the first half of 2023. Kia currently has 2 EV models on sale in the US (soon to be 3 when the EV9 SUV goes on sale), the EV6 and the Niro. Sadly, EV6 sales were down 31% year-over-year (but up 7% month-over-month, so perhaps there is a glimmer of hope forming) and the Niro, which also has plug-in hybrid (PHEV) and hybrid (HEV) versions, was down 10% month-over-month (but up 1% year-over-year).

So you can see in this that neither of Kia’s EV models is responsible for sales growth because the Niro’s 1% growth annually is almost certainly due mostly to the HEV model, and combined EV sales are down anyway thanks to the floundering EV6. This means that, once again, it is the hybrid versions of the Sportage and Sorento that are responsible for the 40% increase for H1 2023 vs. 2022.

Is Kia’s slide toward hybrid sales and away from EVs a surprise? Does it concern you? Is the predominance of SUV sales a shock? Please leave any questions or comments below.

Images courtesy of Kia.

Justin Hart has owned and driven electric vehicles for over 15 years, including a first-generation Nissan LEAF, second-generation Chevy Volt, Tesla model 3, an electric bicycle and most recently a Kia Sorento PHEV. He is also an avid SUP rider, poet, photographer and wine lover. He enjoys taking long EV and PHEV road trips to beautiful and serene places with the people he loves. Follow Justin on Twitter for daily KIA EV news coverage.