Hyundai ute a priority; don’t expect a diesel

HYUNDAI’S giant ute hole is about to get plugged – although it’s looking like being years away from showrooms.

But rather than a long-mooted EV or the SUV-based Santa Cruz (pictured) sold in America, the Korean brand is set to muscle up with a ladder frame workhorse ute to rival the Ford Ranger and Toyota Hilux that dominate with sales.

Speaking at the launch of the new Inster small electric SUV, newly appointed Hyundai Australia CEO Don Romano nominated a ute as one of his priorities for his circa three-year tenure Down Under.

“We are the only major brand without a ute,” he said.

“There is an opportunity … and we have to be part of that opportunity. My goal in three years is to get a production plan in place.”

That’s the good news...

The bad news is that a production plan is very different to a car in production, with Mr Romano conceding a showroom arrival for his yet-to-be-confirmed ute would likely be three or four years away.

And the Hyundai ute looks set to take a very different form to what’s dominating the sales charts today.

While Romano nominates the Ford Ranger and Toyota HiLux as the benchmarks he wants to topple, he doesn’t plan on reshaping the market with a diesel engine, as sister brand Kia is planning with its Tasman ute that is readying for launch.

“I do have concerns with the diesel engine simply because I think a lot of (car) companies right now are burying their heads in the sand when it comes down to the NVES requirements,” he said, referencing the New Vehicle Efficiency Standard that is set to make life tough for non-hybrid drivetrains due to strict CO2 emissions regulations.

While he didn’t rule out a diesel engine in a Hyundai ute, he said it would only be a “temporary” solution and one that would require electrified thinking to take over once CO2 targets toughened.

“I’d rather have a unique drivetrain in four years than a diesel in one year that could cost me more money down the road,” he explained.

He said the electrified route “opens up to a lot of different options when it comes to drivetrains”.

A hybrid as the logical choice, something Romano says is high on the hit list.

Whether it’s a regular hybrid or an externally rechargeable plug-in hybrid (PHEV) remains to be seen.

Given the activity and sales interest with the early breed of PHEV utes –  including the BYD Shark 6, GWM Cannon Alpha PHEV, and Ford Ranger PHEV – that tech appears a logical choice, especially given the advantages such a drivetrain brings with heavy duty towing and long distance driving.

PHEVs also have ridiculously low claimed average fuel consumption numbers that can work wonders for getting CO2 emissions down for fleets (the results will sometimes only be on paper).

But the drivetrain is only part of the puzzle with Hyundai’s ute.

The company also has to determine exactly what underpins it.

There are two main choices: the architecture of the Kia Tasman (remembering Kia is part of the Hyundai Group) or leveraging a memorandum of understanding signed with General Motors in 2024. That MOU could allow Hyundai access to American utes/pick-ups such as the Chevrolet Colorado and Silverado.

Mr Romano said the GM option, while tempting, could pose challenges with foreign exchange and uncertain tariffs under a Trump presidency.

Those foreign exchange issues are another reason he has rated the Santa Cruz as “zero chance” of coming to Australia; that said, he’s left the door open if the value of the Australian dollar improves, adding that “if forex changes, I could change my mind”.

That makes leveraging the Kia Tasman platform “plan one”.

“There is nothing wrong with the body on frame platform that Kia is currently using for the Tasman,” said Mr Romano, who added that he would want it to look very different to the Tasman.

“I just have to make sure that the design is uniquely Hyundai and that the drivetrain … is in line with what we’re going to need from an NVES perspective … and what meets the demands of customers from a towing capacity and from a torque and just drivability.”

Helping the Hyundai Australia ute cause is Mr Romano’s working relationship with Jose Munoz, the man who took over the reins at Hyundai globally early this year.

As the former chief of Hyundai Canada, Mr Romano worked closely with Mr Munoz when he headed Hyundai in North America.

Among all this workhorse ute chat Romano also said a full EV ute (BEV) was still on the cards for Hyundai.

The long-mooted T7 and T10 electric utes are still very much in the frame.

With skateboard-like architectures they would be a different proposition, but one he believes will come into vogue.

“There is a plan to bring out an electric pick-up,” added Mr Romano.

“There will be a market for it but it’s not going to go after number one or two.”