U.S. auto sales at Hyundai and Kia rose by double-digits last month compared to August 2021, ending a stretch of five straight monthly declines at the Korean brands, as the industry’s chronic inventory shortage slowly eases.
Volume rose 14 percent at Hyundai and 22 percent at Kia behind strong retail demand for crossovers, EVs and some cars.
“We’re seeing inventory begin to rebound which resulted in strong sales this month,” said Randy Parker, CEO of Hyundai Motor America. The company said it ended August with 19,209 cars and lights trucks in U.S. inventory, up from 14,784 at the close of July but off from 39,357 at the end of August 2021.
Kia, with the lowest days supply of vehicles, according to Cox Automotive data, said it set an August record with 66,089 deliveries, signalling the company’s lineup continues to churn at a high rate.
“We are optimistic that production through the end of the year will improve,” said Eric Watson, vice president of sales operations for Kia America.
Genesis sales rose 3 percent to an August record of 5,102 on continued strong demand for crossovers.
Toyota Motor Corp., Honda Motor Co., Subaru and Mazda will release August results later Thursday, followed by Ford Motor Co. and Volvo on Friday. The rest of the auto industry reports quarterly sales.
U.S. light-vehicle deliveries are forecast to rise 3.6 to 4.6 percent across the industry, forecasters say, helped by an extra selling day, and marking the first monthly gain, year over year, since summer 2021.
August 2021 was the first month when chronic inventory shortages had a significant impact on new-vehicle sales following the start of the pandemic. As a result, the year-over-year sales decline last month will be smaller than it has been in recent months, whereas August 2021 sales were more reflective of actual consumer demand, analysts say.
