[dZired]

In the year 2016, Kia, for the first time ever, outsold Hyundai in the passenger car segment in Korea - the automakers' home country. The company has also managed to maintain its lead over Hyundai for the first three months of 2017. Meanwhile, similar results were seen in the American markets as well, where Kia outsold its parent company for the first time in May 2017.

In Korea, Kia has always been a strong competitor to Hyundai in the passenger car segment. However, this is the first time ever when the manufacturer has managed to surpass the sales of its parent company. Kia's 2016 sales chart recorded 475,107 unit sales, as compared to Hyundai's corresponding figure of 418,303. This significant margin between Kia and Hyundai sales in Korea comes at a time when Hyundai is struggling to maintain its market share in its home country. The Korean automaker recorded a sales drop of 21% in 2016, as compared to the preceding year.

Kia started to creep closer to Hyundai's passenger vehicle sales in Korea from the year 2010. When Hyundai introduced its rather contemporary fluidic design philosophy across its portfolio of cars, it didn't receive a satisfactory response from the Korean audience. As a result, customers started to prefer Kia's conservative and European styling, which helped the car maker to improve its sales figures. Moreover, Kia and Hyundai share many components across their portfolio. However, products sold under the Kia brand are priced lower than their corresponding Hyundai rivals. As a result, customers started to notice that they were getting essentially the same car with a Kia badge at a lower price point. This too amounted for the rising preference towards Kia cars over Hyundai passenger vehicles.

Meanwhile, the American markets too have brought bad news for Hyundai. In May 2017, Kia sold 58,507 passenger vehicles in America, as compared to 58,259 units sold by Hyundai. The margin here is a lot smaller than what is being seen in Korea. However, both Korean automakers have experienced a drop in overall market share, which will surely be a sign of worry for the group's top bosses.

The Hyundai-Kia automotive group, which also includes the Genesis luxury car brand, recorded a year-on-year sales drop of 11.5% in May 2017. Hyundai has clearly suffered more than Kia, as the former recorded an 18% drop in sales, as compared to the latter's plunge of 7%. However, market experts suggest that Hyundai will be able to regain its market share in the coming months, thanks to some good sales numbers from the Tucson as well as the Ioniq hybrid. As a result, Kia outselling Hyundai is a sight that won't be seen frequently in the American markets.

Source: Forbes and The Truth About Cars

[arvi86]

I'm not surprised at all. When you get essentially the same car with arguably better styling and a cheaper price, who would care about the badge? Even if they do, Kia isn't that far behind Hyundai in terms of brand image.

This is just the wake-up call Hyundai needs to improve their designs and styling. I loved their 'Fluidic Scupltures', especially the Verna, Elantra and Sonata but the current versions look worse than their predecessors. Kias, in contrast, look way better.

[invidious]

Hyundai and Kia started getting popular when petrol prices made the "gas guzzling" cars less attractive propositions. Now that petrol prices have decreased, it makes sense that these brands will lose their sheen.

[chaudh2s]

I think not just in korea and US, even in europe (in germany atleast!) they outsell hyundai. Their latest models (whatever segment they may belong to) are such good looking, they give a tough fight to the germans in their home country, and you see quite a lot of them actually on the roads, as compared to suzuki, hyundai, etc.

[GTO]

Coming of age indeed. The kid brother has grown up now . This development is particularly interesting because Kia is going to start its Indian innings shortly.

From what I've read, Kia is leaner & more aggressive. Hyundai has slowed down a bit, which is inevitable with growth & size. Nevertheless, it's a huge achievement from the management. Not only did they make Hyundai a quality leader - greatly revamping its overall image - but they've also turned Kia from an absolute nobody into a brand that's arrived.

Originally Posted by dZired

However, both Korean automakers have experienced a drop in overall market share, which will surely be a sign of worry for the group's top bosses.

Both of them need more Crossovers & SUVs. They need a wider range to fully attack the growing crossover market.

[CrAzY dRiVeR]

Another interesting aspect I noticed today. Felt it was very relevant to the thread -

Not only have Kia surpassed Hyundai in terms of sales, but is getting recognised as a quality brand as well. JD Power lists Kia on top, for having the least issues among new car purchases in the US. They are way above parent brand Hyundai in this regard as well.

Coming of age, indeed!