Both Korean automakers entered 2026 on a hot streak, posting their best-ever January results in the U.S. market. Hyundai and Kia combined to sell over 125,000 vehicles last month, and hybrid demand played a huge role in the surge. If you thought these two brands would slow down after record-setting 2025 numbers, think again.

• Hyundai sold over 55,600 vehicles in the U.S. last month, up 2% from the year prior, while Kia America sold an impressive 64,502 vehicles, an increase of 13% from January 2025.
• Hybrid sales surged 65.7% year-on-year to 27,489 units between both brands, with Hyundai recording a 51.9% increase and Kia jumping 83.8%.
• Six Kia models posted best-ever January sales, and electrified models were up 45% while SUV sales grew 14%.

Kia Outsells Hyundai for the First Time in Months

January brought a surprising twist to the sibling rivalry between Hyundai and Kia. Hyundai reported a 2.1% increase in January sales to 55,624 vehicles, while Kia saw a 13% jump to 64,502. The results marked the first time since February 2025 that Kia outsold Hyundai in the U.S. and stood as Kia’s largest monthly lead over Hyundai since March 2020.

That marks a reversal of 2025’s full-year sales, where Hyundai eclipsed Kia by 49,531 vehicles. So what changed? A big part of Kia’s success came from its crossover lineup and strong sedan demand. The Carnival jumped 60%, the Sportage climbed 23%, the K5 rose 8%, the Telluride gained 7%, the Seltos popped 6%, and the K4 edged up 2%, all setting new records for January.

Both brands’ compact crossovers remain their best-selling models, but the Sportage closed the gap on the Tucson. In January 2025, Hyundai sold 3,668 more Tucsons than Kia sold Sportages. A year later, the Tucson is only ahead by 444 units. The 2024 Kia Sportage set the stage for this momentum, and the updated 2026 model with gas, hybrid, and plug-in hybrid options has clearly kept buyers coming.

Hybrids Are Behind the January Surge

If there’s one trend both brands agree on, it’s that hybrid buyers showed up in force to start the year. Hyundai Motor North America’s president and CEO, Randy Parker, said hybrid demand “was the star of the month, up more than 60%.”

The new Palisade and Santa Fe hybrids were the main force on Hyundai’s side. The Palisade had a particularly good month, with sales rising 29%. It was also named the 2026 North American Utility Vehicle of the Year.

On Kia’s end, hybrid models led the way too, with the Carnival, Sportage, Sorento, and Telluride posting new January sales records. Electrified Kia models (including both hybrids and EVs) were up by 45%, and SUV sales grew by 14%.

Industry officials say continued gains in hybrids and SUVs could allow Hyundai and Kia to overtake Ford and become the third-largest automaker in the U.S. That’s a big deal for two brands that many Americans still remember as budget options from the early 2000s.

EV Sales Tell a Different Story

While hybrids boomed, the electric vehicle numbers weren’t as rosy. Sales of Hyundai’s most popular EV, the IONIQ 5, fell 6% from last year to 2,126. Hyundai sold another 580 IONIQ 9 models last month and just 344 IONIQ 6s, down 61% from 871 in January 2025.

Kia sold just 540 EV6 and 674 EV9 models, down from 1,542 and 1,232 in January 2025. Like nearly all automakers, Hyundai’s EV sales took a hit after the $7,500 federal tax credit expired at the end of September.

In the meantime, Hyundai and Kia are stepping in with their own discounts and incentives. Hyundai cut prices on the 2026 IONIQ 5, making it one of the few EVs on the market starting under $35,000. Kia, meanwhile, is slashing prices by over $10,000 across its entire EV lineup.

What’s Coming Next for Both Brands

The January numbers don’t even account for some of Kia’s most anticipated arrivals. The new K4 Hatchback and Telluride will both reach showrooms imminently. The K4 Hatchback’s starting price of under $25,000 should make it very popular, especially since Kia hasn’t had a small hatchback on sale for a few years.

With the new Telluride and Palisade hybrids now available, Hyundai and Kia expect the hot streak to continue. Kia is targeting global sales of 3,350,000 units in 2026.

Both brands are also preparing new EVs for later in the year. Kia expects to roll out a full EV lineup, including a new entry-level EV2, the EV3, EV4, EV5, EV6, EV9, and PV5. Hyundai is preparing to introduce the all-new IONIQ 3 in September, positioned as an affordable compact electric SUV.

It’s still early, but the first month of 2026 set a strong tone. Both Hyundai and Kia are selling well across multiple powertrains, and their focus on giving buyers a wide range of choices seems to be paying off. With new models arriving and hybrid demand showing no signs of cooling, these two brands look ready for another record-setting year.