Hyundai and Kia have posted their best July ever in the United States, with a combined 165,284 vehicles sold — a 5% increase from the same month last year. The results reflect a clear and growing consumer preference for hybrid powertrains over fully electric models.

Hybrids Drive the Gains

Hybrid vehicle sales surged 52.2% to 43,727 units in July. Hyundai sold 22,733 hybrids, up 35%, while Kia’s hybrid sales jumped 76.6% to 20,994. Several models set all-time monthly records. The Hyundai Sonata HEV, Elantra HEV, and Tucson HEV all set new July sales highs. On the Kia side, the Sportage hybrid, Carnival hybrid, and Sorento also posted record months.

The Tucson family alone jumped 20% year over year, while continued momentum across Hyundai’s SUV portfolio underscored the strength of its balanced lineup.

EVs Take a Sharp Step Back

The contrast with EV performance is stark. Combined EV sales plunged 40.5% to 7,210 units. Hyundai’s EV sales fell 46.1% to 4,545, while Kia’s declined 27.7% to 2,665.

Industry observers attribute the decline to the expiration of the $7,500 consumer EV tax credit under the US Inflation Reduction Act. Both brands have invested heavily in their EV lineups, but the removal of the federal incentive removed a key financial argument for buyers choosing electric over hybrid.

The Bigger Picture

Together, Hyundai and Kia sold 1,039,632 units from January through July, cementing the group’s position as the nation’s fourth-largest automaker behind General Motors, Toyota Motor North America, and Ford.

Industry analysts point out that the US automakers — General Motors, Ford, and Stellantis — are scaling back EV ambitions and refocusing on combustion and hybrid models. Observers say Hyundai Motor Group could gain ground as US rivals reiterate plans to prioritize new internal combustion engine models while providing few updates on their EV businesses.

What This Means for Buyers

The July numbers reinforce a trend that has been building for several months: US consumers are moving toward hybrid vehicles as a practical middle ground between full electrification and conventional combustion. For buyers shopping in the compact and midsize SUV segment — where the Tucson, Sportage, Santa Fe, and Telluride compete — Hyundai and Kia now offer one of the widest and most competitive hybrid selections in the market.