Hyundai Motor leads all regions in Latin America sales growth

Kia outpaces India, Africa with sharp gains in the region

Chinese brands intensify localization push

The Creta SUV, sold by Hyundai Motor in Brazil. [Hyundai Motor]
The Creta SUV, sold by Hyundai Motor in Brazil. [Hyundai Motor]

Hyundai Motor and Kia posted sharp growth in Latin America in the first half of this year, with the region emerging as a new engine of expansion for both automakers. Hyundai Motor recorded its highest sales growth rate in Latin America among all major global regions it tracks, while Kia also grew fastest there, outpacing India and Africa.

Hyundai Motor's retail sales in Latin America reached 162,000 units in the first half of this year, up 11 percent from the same period last year — the highest growth rate among the company's major global regions. India, where vehicle demand is also rising rapidly, posted 10 percent growth over the same period but still trailed Latin America.

Kia's Latin America sales came in at about 84,000 units in the first half, up 21 percent year on year — also the company's fastest-growing region. India and Africa followed with gains of 19 percent and 10 percent, respectively.

Latin America becomes Hyundai Motor's fourth-largest market as Middle East slows

Hyundai Motor's factory in Piracicaba, Brazil. [Hyundai Motor]
Hyundai Motor's factory in Piracicaba, Brazil. [Hyundai Motor]

Latin America's standing as a strategic market has risen sharply. In the first half of last year, Hyundai Motor's Africa and Middle East sales exceeded Latin America by about 9,000 units, but the rankings reversed this year. Africa and Middle East retail sales reached only 123,000 units in the first half of this year, while Latin America climbed to 162,000 units. Latin America has now become Hyundai Motor's fourth-largest sales region, behind North America, India and Europe.

Kia has followed a similar trajectory. Rapid growth in Latin America has pushed the region past the Middle East into Kia's top five sales regions. As growth in established markets such as the United States and Europe has slowed, Latin America is emerging as a new axis of expansion for both brands.

Hyundai Motor Executive Chair Euisun Chung reviews vehicles with employees during a visit to the company's Brazil factory in July. [Hyundai Motor]
Hyundai Motor Executive Chair Euisun Chung reviews vehicles with employees during a visit to the company's Brazil factory in July. [Hyundai Motor]

The sales surge is largely attributed to the automakers' ability to deploy locally produced models tailored to regional demand. Hyundai Motor uses Brazil as its core production base for Latin America. The Brazilian factory produces about 200,000 vehicles a year in a mixed-model line that includes the HB20, Creta and i20 — all local strategic models.

The i20, launched in Brazil in June, is a key model targeting the B-segment market alongside the flagship HB20. It features a flex-fuel powertrain capable of running on both gasoline and ethanol, reflecting the characteristics of the Brazilian market. Despite being a subcompact, the i20 was designed to offer SUV-level interior space and comfort, along with advanced convenience and safety features.

Kia uses Mexico as a major production and export hub serving both Latin America and North America, manufacturing the K3 and K4 there for supply to neighboring markets. The company plans to strengthen the role of its Mexican factory and expand its global flexible production system to meet growing demand for both internal combustion engine vehicles and hybrids in emerging markets.

BYD climbs from 7th to 4th in Brazil as Chinese brands intensify push

Vehicles made by BYD, Chery and SAIC for export are seen at the Port of Shanghai. [AFP]
Vehicles made by BYD, Chery and SAIC for export are seen at the Port of Shanghai. [AFP]

As Latin America's auto market grows rapidly, competition with Chinese automakers is intensifying. According to Brazil's National Federation of Automotive Vehicle Distribution (Fenabrave), Hyundai Motor ranked fourth in Brazil's annual new passenger car registrations last year with 200,583 units, while BYD ranked seventh with 111,683 units.

The rankings have since reversed. In the January–August period this year, BYD rose to fourth place with 146,475 units, while Hyundai Motor slipped to fifth with 126,917 units. BYD has already surpassed its full-year 2025 registration total in just eight months.

BYD is not alone. Other Chinese brands — including CAOA Chery, a Chery affiliate, and GWM — are also climbing quickly in Brazil. CAOA Chery ranked 11th and GWM 12th in annual passenger car registrations last year. This year, Geely, GAC and Leapmotor have also entered the top 20, broadening the Chinese brands' footprint rapidly.

Hyundai Motor Group plans to respond by linking local production in Brazil with its global manufacturing bases in South Korea, India and elsewhere to expand product supply and strengthen market-specific lineups. The group also intends to increase the rollout of locally tailored eco-friendly vehicles in line with the Brazilian government's green vehicle policies, while building longer-term competitiveness in hydrogen mobility and energy.

"As competition in China — the world's largest electric vehicle market — grows ever fiercer, Chinese automakers are rapidly expanding exports and local production in emerging markets including Latin America," an industry official said. "With both imports and local output from Chinese brands rising simultaneously in Latin America, having the right vehicle and powertrain strategy tailored to local consumer preferences will matter just as much as price competitiveness."


eyre@heraldcorp.com