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Hyundai, Kia’s Record Sales Streak Overshadowed by EPA’s Fuel Economy Blow

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Hyundai Motor and Kia are readjusting the fuel economy ratings for some models sold in the United States. Following fuel economy tests by local environmental authorities, it was pointed out that the mileage ratings needed to be lowered. This is the first time in 24 years that vehicle fuel economy ratings have been changed due to test results.

According to industry sources on the 20th, the US Environmental Protection Agency (EPA) recently downgraded the fuel economy ratings of the 2012-2013 models sold locally by Hyundai and Kia. As a result of an investigation and audit of vehicle fuel economy due to consumer complaints, it was found that these vehicles had lower performance than the indicated fuel economy. On average, there was a difference of 1-2 miles per gallon, and the model with the largest gap was the Kia Soul, a small sport utility vehicle (SUV), which showed a difference of 6 miles.

The EPA conducts annual fuel economy rating surveys to confirm whether the performance data submitted by automobile manufacturers, such as driving distance and exhaust gas, match. Regular tests are conducted on an average of 150-200 vehicles annually.

Based on the results of this EPA audit, Hyundai and Kia plan to issue stickers reflecting the new fuel economy ratings through their local sales network and reattach them to these models.

The industry is concerned about Hyundai and Kia’s declining local brand image and credibility. This is because it is the first time in 24 years since 2000 that the fuel economy rating has been adjusted through an EPA vehicle fuel economy investigation and audit. An industry insider said, “It seems inevitable that the brand image will be hit as the fuel economy rating is being adjusted at a time when record-breaking sales were achieved in the US market last year.”

Meanwhile, Hyundai and Kia achieved record sales in the US auto market last year. Hyundai showed a sales increase for 17 consecutive months, selling 801,195 units, a double-digit growth of 11% compared to the previous year (724,265 units). It also achieved a 1% growth in retail sales compared to last year, setting a new retail sales record for the third consecutive year. The monthly sales record was also broken. In December of last year, it sold 76,164 units, a 4% increase compared to the previous year (72,058 units), achieving the highest December sales record ever. Thanks to the December sales, it achieved the highest 4th-quarter sales ever last year. It sold 206,048 units, a 5% increase from the previous year (195,967 units). In the fourth quarter, eco-friendly car retail sales grew by a double-digit 37% compared to last year.

Kia sold 782,451 units in the US market in the same year, a double-digit growth of 13% compared to the previous year and the highest annual sales record ever. This performance is evaluated by focusing on the local SUV market. Kia achieved the highest third-quarter performance in the third quarter of last year, recording 213,410 units, a double-digit growth of 13.8% compared to the previous year, thanks to its SUV sales performance.

theguru
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