After years of rapid growth, the U.S. electric vehicle market is hitting some turbulence. General Motors is muscling through with a broad, well-rounded lineup. Tesla is wrestling with self-inflicted wounds. And Hyundai and Kia are leaning on their updated models, waiting for the dust to settle on what has been an extremely chaotic policy environment.
Amid everything, the Hyundai Motor Group managed to clock record car sales in July—EVs and hybrids were some of their strongest performers.
Welcome back to Critical Materials, your daily roundup of news and events shaping the world of electric cars and technology.
Also on deck today: The refreshed Model Y is having no magical impact on Tesla’s Europe sales, which fell again in July, except in two countries that bucked the trend. And 300 Nissan Leaf batteries have found a meaningful post-retirement plan in Texas. Let’s begin.
30%: Hyundai And Kia Post Record Sales In July
Hyundai reported its best-ever total and retail sales for July on Friday. With nearly 80,000 units sold last month, the automaker saw a 15% year-over-year sales growth. Its sister brand, Kia, is also tearing into the U.S. auto market share, with 12% sales growth in July thanks mainly to its SUVs. Not bad for both as tariffs start to rattle buyer confidence across the board.
While Hyundai’s EV sales have been up and down this year, the Ioniq 5 got back in fighting shape with 5,818 units sold in July, a 71% increase over the same period last year. That may also be due to the completed changeover to the updated Ioniq 5, which includes a Tesla-style plug and qualifies for EV tax credits when purchased because it's built in America now.
Hyundai has been offering aggressive leasing and financing offers on its EVs and it’s possible that more buyers are rushing to take advantage of the $7,500 federal EV tax credit before it sunsets on Sept. 30.
The automaker’s hybrids have also been popular this year. Buyers seem to have an affinity towards the Elantra and Santa Fe hybrids, both of which saw record sales in July, although we don’t know how many units exactly Hyundai sold last month—sales of those models are grouped together with their gas-only versions.
Hyundai’s overall electrified sales, which include hybrids, plug-in hybrids and fully electric models, were up 50% last month.
“We achieved new records across multiple nameplates, including Elantra HEV, Elantra N, Santa Fe HEV, Palisade, Ioniq 5, and the Santa Fe family, while electrified vehicle sales surged 50% compared to last year,” Randy Parker, president and CEO of Hyundai Motor North America, said in a press release.
Kia has great news for its gas-powered line-up, but less so for its electrified models. It's 71,123 deliveries mark a 12% year-over-year increase, thanks to the Telluride and Sportage SUVs and the K4 sedan. Its EV sales, meanwhile, seem to be struggling this year.
It sold 1,737 units of the EV9 three-row electric SUV, marking a 4% decline compared to last year. Plus, the EV6 wasn’t quite able to manage the same sales momentum as the Ioniq 5, with sales dropping 16%, declining to 1,290 units last month.
Earlier this year, Kia attributed the sales drop for the EV6 and EV9 to model year changeovers. Both EVs also now ship with the Tesla-style North American Charging Standard port right from the factory, opening up seamless access to the vast Tesla Supercharger network.
It’s worth noting that both Hyundai and Kia were relatively early to the EV market in the U.S. But rivals have since stepped up big time. There’s more competition from General Motors, with sales of the Chevy Equinox EV taking off this year and Chevrolet becoming America’s second biggest EV seller, right behind Tesla.
60%: Tesla’s Party In Europe Is Over
Tesla’s refreshed Model Y isn’t delivering the sales bump the brand hoped for in Europe. Registrations are sliding across much of the European Union, with only two countries bucking the trend.
The automaker’s July sales were down 86% in Sweden, with just 123 cars sold. Sales in France declined 27% with about 1,307 units delivered, Reuters reported. Sales also decreased in the Netherlands (-62%) and Denmark (-52%).
Although Tesla sales in Spain were up 27% to 702 cars. That’s a small number compared to how BYD fared in Spain last month. The Chinese EV maker sold three times as many cars in Spain last month compared to Tesla, with 2,158 units sold. And Tesla sales were also up in Norway by about 83% to 803 units.
While Tesla isn’t doing particularly well in the U.S. either, amid its pivot to AI and robotics, the decline in Europe appears to be far more severe. Unlike the U.S., where affordable Chinese EVs are completely blocked off with steep tariffs, countries in the EU have seen an influx of affordable models from the likes of BYD, MG Motor (Owned by SAIC) and Zeekr.
A more affordable model from Tesla is due in the fall—and that’s expected to be a cheaper Model Y. We’ll see if it does anything to help revive Tesla’s EV sales.
90%: Old Nissan Leaf Batteries Find A New Home
Unlike internal combustion engines, which are difficult to repurpose once they’ve powered a vehicle for years, EV batteries have value long after they’re done powering a car.
U.K.-based research firm IDTechEx estimates the second-life EV battery market could hit $4.2 billion by 2035. A glimpse of that future is already taking shape in Texas, where a grid-storage project plans to buy 300 retired Nissan Leaf batteries to store excess renewable energy, according to Inside Climate News.
When an EV battery drops to about 85% of its original capacity, it’s often deemed unsuitable for driving as range suffers. But for stationary storage, that same battery is ideal. With solar projects booming across the U.S., both dedicated new packs and retired EV batteries are being redeployed to capture surplus energy and help stabilize the grid.
100%: Is The Current Environment Affecting Your Car-Buying Decisions?
Hybrid sales are booming in the U.S., as evidenced by the number of Santa Fe and Elantra hybrids Hyundai is selling. At the same time, EV sales are on a rollercoaster ride, with the Ioniq 5 reaching new highs with the Kia EV6 amidst a slump.
Are you also considering buying a hybrid instead of an EV? Or do you plan to take advantage of the federal EV tax credit before it expires on Sept. 30? How is the overall policy climate impacting your car-buying decisions? We’d love to hear from you, so drop your thoughts in the comments.
Have a tip? Contact the author: suvrat.kothari@insideevs.com
