LOS ANGELES — A dearth of fleet sales and weak demand for certain crossovers pushed Hyundai's and Kia's U.S. arms to sharp sales declines in July.
The Korean duo sold 110,466 vehicles, down 18 percent for the month and 10 percent for the year. And Hyundai-Kia is still looking for its first monthly sales gain of 2017.
Sales at Hyundai Motor America dropped 28 percent from a year earlier, to 54,063 Hyundai and Genesis vehicles. Hyundai Motor America is down 11 percent for the year.
Its sales decline came amid increased incentive spending. The automaker paid out $3,249 in average discounts per vehicle last month, according to ALG estimates. That's a 26 percent jump from July 2016, though below the industry average of $3,565.
Hyundai attributed its decline mostly to a drop in fleet sales, which it said amounted to less than 10 percent of its volume for the month. Yet in an era of hot crossover sales, even its Santa Fe crossovers (the Santa Fe and smaller Santa Fe Sport) were down 11 percent in July to 12,749 sales. The crossover duo are up 1.4 percent on the year to 72,761 total sales.
The Tucson compact crossover remained Hyundai's sole bright spot, posting its best month ever with 11,257 sales in July, a 46 percent increase from a year earlier. The crossover is up 25 percent for 2017 to 62,964 sales.
All of Hyundai's cars saw sharp declines in July.
The Sonata -- a refreshed version of which went on sale last month -- dropped by nearly half to 10,648 vehicles. The Elantra plunged 36 percent to 13,287 sales while the subcompact Accent sank 70 percent to 2,115 vehicles.
Hyundai's Genesis luxury marque sold 1,644 vehicles in July between its two nameplates. The Ioniq hybrid line notched 1,252 vehicles.
Kia Motors slipped 5.9 percent in July to 56,403 sales. The brand is down 9.3 percent on the year to 352,139.
Its Sportage was down 12 percent to 7,135 sales while the Sorento dipped 1.2 percent to 9,734.
The compact Forte has emerged as Kia's best-selling nameplate for 2017. It jumped 17 percent in July to 12,022 sales and is up 12 percent on the year to 70,768 total vehicles.
That puts it ahead of the Soul, off 21 percent on the year to 66,077 sales, and the Optima, which is down 4.5 percent to 67,650 sales for 2017.
Kia's incentive spending jumped in July from a year earlier. Kia spent $3,468 per vehicle, according to ALG estimates, a 28 percent increase from 2016.