Asia Tech Wire (July 10) -- A group of U.S. dealers is suing South Korean automaker Hyundai for allegedly inflating electric car sales.

Hyundai is currently the world's third-largest automaker behind Volkswagen and Toyota, yet some of its U.S. dealers have challenged its electric vehicle sales figures, claiming that actual sales are not as high as officially reported.

Napleton Aurora Imports and affiliated franchises filed a lawsuit against Hyundai Motor America last week in the U.S. District Court for the Northern District of Illinois.

The lawsuit alleges that the U.S. subsidiary pressured dealers to misuse inventory codes meant for "loaner" vehicles. This practice temporarily boosts internal and external sales figures, but dealers would still eventually have to change the vehicle codes when they actually sell.

In return, dealers participating in the program receive incentives from Hyundai, such as purchasing cars at a lower cost, access to better car allocations, and additional cash bonuses.

And those dealers who refused to participate suffered unfair treatment and even faced termination of their operating rights.

It is important to note that at this point, these are only allegations and have not yet resulted in a judgment from the Chicago court.

In response, Hyundai said the company doesn't tolerate falsification of sales data and has launched an investigation into the matter.

Additionally, Hyundai said it has filed a lawsuit in South Florida to terminate two Napleton-related franchises in connection with a criminal sexual battery allegation.