Hyundai Dealers Claim EV Sales Numbers Are Fake

Key Takeaways

A lawsuit alleges Hyundai inflated EV sales numbers by misreporting unsold vehicles as loaner fleet units.
Dealers who complied with the alleged scheme were rewarded with allocations for in-demand models.
Hyundai Motor America denies condoning the practice and has launched an investigation.

Five Napleton Automotive Group dealerships in Illinois have filed a lawsuit against Hyundai Motor America (HMA), accusing the company of unlawful practices that led to positive electric vehicle (EV) sales in the US during the first six months of 2024. Hyundai reported an increase in EV sales earlier this month, contrary to what other brands have been experiencing since last year.

2024 Hyundai Ioniq 6

Base MSRP: $37,500
Horsepower: 149 hp
Fuel Economy: 151/120 MPG
Electric Range: 240 – 361 miles

The latest Hyundai sales report shows 18,728 Ioniq 5 EVs sold in the US in H1 2024, a 37% increase compared to the same period last year. Meanwhile, HMA reported a 113% increase in sales of the Ioniq 6 in the same timeline, selling 6,912 units versus 3,245 in 2023. These two EVs posted the biggest sales growth percentage in the sales report.

The Alleged Scheme

According to the lawsuit, filed in the US District Court for the Northern District of Illinois in Chicago and acquired by Reuters, dealers were allegedly asked to falsely report EV sales numbers by miscoding unsold EVs as part of their loaner fleet. The lawsuit included a transcript of a phone call from a Hyundai district sales manager telling a dealer that they “gotta hit a number for the press and for the Koreans.”

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Meanwhile, the lawsuit claimed those who agreed to the scheme were rewarded with allocation to high-demand vehicles such as the Palisade, Santa Fe, and Tucson – Hyundai’s best-sellers in the US. Those who didn’t comply were denied allocations to these in-demand models, naturally affecting profits. The lawsuit further claimed that noncompliant dealers were not given “Flex Cash,” which is usually used for dealership discounts that help attract more customers and increase demand.

Under Investigation

“We do not condone any intentional falsification of sales reporting data and have launched an immediate investigation. We intend to take any and all corrective and remedial actions required based on that investigation,” an HMA spokesperson said in a statement, Automotive News reports.

Hyundai’s Next Big Thing Has Hit A Bump In The Road

Despite the Hyundai Palisade being a big money-spinner for the South Korean brand, it’s delaying its electric equivalent.

Napleton Automotive Group is currently in a dispute with HMA as the latter is about to terminate two dealership franchises in Florida – a decision that came after a Napleton executive was charged with sexual battery of an employee. The executive was charged with five years’ probation under a “best interest” plea.