South Korean automakers Hyundai and Kia are losing ground in China as their electric vehicle strategy struggles to attract buyers. In September 2026, their combined retail sales fell to approximately 9,000 vehicles, the first monthly figure below 10,000 this year. The latest Hyundai and Kia China Sales figures reveal a sharp 39% year-on-year decline and a combined market share of just 0.6%. Despite introducing electric SUVs specifically for Chinese customers, both manufacturers face relentless competition from domestic brands. The downturn underscores how rapidly the world’s largest automotive market is changing, and how difficult a comeback may prove for global automakers.
Why Are Sales Falling?
Hyundai and Kia China Sales fell as China’s passenger-car market shrank and domestic rivals gained share. Localized EVs have not revived sales.
September 2026: The Numbers Tell the Story
According to a Hana Securities analysis of China Passenger Car Association (CPCA) retail data, September results were stark:
- Hyundai: Approximately 4,000 vehicles sold, down 47% year on year.
- Kia: Around 5,000 vehicles sold, a 31% annual decline.
- Combined: Roughly 9,000 sales, down 39%, with just 0.6% market share.
The brands once controlled more than 10% of China’s passenger-car market during the mid-2010s. Their combined sales also fell for eight consecutive months through September, showing persistent sales weakness.
China-Specific EVs Fail to Spark a Comeback
Hyundai’s Elexio electric SUV recorded only 251 retail sales from January through September 2026, against 1,216 during October–December 2025. Meanwhile, the China-focused Ioniq V registered 558 sales in September.
These results underline the challenge facing Hyundai and Kia China Sales: developing locally tailored EVs is no guarantee of winning customers against fast-moving domestic rivals.
Why Chinese EV Brands Have the Advantage
China’s overall passenger-car retail market declined 28% year on year in September, but domestic brands captured 69.8% market share. New-energy vehicles, including battery-electric and plug-in hybrid models, represented about 67% of retail sales.
Domestic manufacturers such as BYD benefit from extensive model ranges, intense pricing pressure and rapid product updates. Foreign manufacturers must compete on technology, value and consumer appeal, not introduce another electric SUV.
A Bigger Threat Beyond China
The challenge extends to Europe. Across the EU, the United Kingdom and EFTA markets, BYD, Chery and SAIC together registered 816,898 cars between January and September 2026, capturing 7.7% of total passenger-car registrations. That exceeded Hyundai and Kia’s approximately 770,795 registrations.
Chinese competition is growing in South Korea too: BYD ranked fourth among imported brands during the same nine-month period, while Chery is preparing to enter the market.
Hyundai’s Recovery Plan: 20 New Models
Hyundai aims to introduce 20 models in China over five years, including extended-range electric vehicles, and raise annual sales to 500,000 units. A new electrified SUV is planned for the first half of 2027.
For Hyundai and Kia China Sales to recover, stronger products must translate into real showroom demand. Their next launches will test whether global automotive giants can regain relevance in China’s fiercely competitive EV era.
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