Hyundai and Kia have weathered the chip shortage crisis better than most competitors in Europe, with significant market share gains in all major markets.
The Korean brands have leveraged their procurement strategy and their links with Korean chipmakers to avoid the long plant stoppages which have hit rivals such as Volkswagen Group and Stellantis, whose mass-market brands include Peugeot, Citroen, Fiat and Opel.
Hyundai-Kia was Europe's fourth-largest group by volume in September. The group bucked a 25 percent decline in the EU, UK and EFTA markets with a 6.9 percent increase in registrations, pushing its market share up to 11.1 percent from 7.8 percent in September 2020. Kia's registrations increased 8.1 percent and Hyundai's volume rose by 5.7 percent.
The two brands increased sales and market share in September in most big European markets. Here are some examples:
- Kia was the UK's second most popular brand during the month with a 7.7 percent market share, up from the 4.5 percent achieved in September 2020. Kia's market share was just below the 7.9 percent share of Toyota, which was the country's top-selling brand in September. Hyundai's registrations rose by 5.3 percent for a 5.7 market share, up from 3.6 percent.
- Hyundai posted a 31 percent jump in sales in France, while Kia's registrations increased by 14 percent. Their market shares grew to 3.3 percent and 3.1 percent respectively, up from 2 percent and 2.2 percent.
- In Italy, Hyundai increased sales by 2.6 percent, and its market share rose to 4 percent from 2.6 percent. Kia posted 7.6 percent growth and saw its share rise to 4.5 percent from 2.8 percent.
- in Spain, Kia's registrations rose 3.3 percent for a 7.8 percent share, up from 6.4 percent. Hyundai increased sales by 8.9 percent, with its market share rising to 7.6 percent from 5.1 percent.
- The brands also gained market share in Germany, despite suffering sales declines. Hyundai saw sales drop by 12 percent in a market down by 26 percent. Its share rose to 5.3 percent from 4.4 percent. Kia's registrations were down 8.5 percent but its market share grew to 3.2 percent, up from 2.6 percent.
Kia UK CEO Paul Philpott said in a statement that growing demand for the brand's battery-powered vehicles such as the e-Niro and electric Soul had helped the brand to achieve record September sales in Great Britain.
A Hyundai brand spokesman said high demand for new models such as the Tucson SUV, the i20 small hatchback and Kona full- electric small SUV were strong growth drivers.
Hyundai and Kia both have European factories and its Europe-built models have an at least partly different supply chain from Korean-built ones, which has helped them better weather the chip shortages.
Hyundai builds the Tucson, the i30 compact car, and Kona at the Nosovice in the Czech Republic. Its plant in Izmit, Turkey, supplies the European market with the i10 minicar and i20.
Kia produces the Ceed compact hatchback, the XCeed compact crossover and Sportage compact SUV in Zilina, Slovakia.
Hyundai's plant in Nosovice has not stopped production due to a lack of components, although it did skip overtime on Saturday shifts originally planned for September, spokesman Petr Michnik said. Production through August was up 33 percent to 182,400 cars.
Hyundai Motor Chief Operating Officer Jose Munoz told reporters on Wednesday that the automaker decided not to cut orders for semiconductors during the pandemic after seeing the Asian markets recover more strongly than expected. The automaker had the "toughest months" in August and September but the worst has passed, he said.
Ioannis Roussis, a Kia Europe product marketing manager, said at a Kia event in Spain on Monday, said the decision not to reduce orders was one of the reasons the group managed to weather the semiconductor shortages better than competitors.
Links to Korean chipmakers also helped Hyundai, Kia and the group's Genesis premium brand.
Genesis "had no chip issues" because of its connections in semiconductor maker SK Hynix, a European spokesman for the brand said.
EDITOR'S NOTE: An earlier version of this story misstated Hyundai-Kia's September sales increase and market share.
