hyundai palisade rult
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Carsales Staff18 Sept 2019
NEWS

Aussie input for first Hyundai pick-up

Local market research gets the ball rolling for Korean brand’s inaugural ute

Hyundai’s first ute is another step closer following a recent market research study in Australia, one of the world’s biggest pick-up markets.

Speaking at this week’s launch of the new Hyundai Venue compact SUV, Hyundai’s Australian CEO JW Lee said he hopes the research, which was also conducted in Asian and Middle East countries, will result in a full range of utility vehicles ideally suited to Australians.

“A market research team came to Australia and other South East Asian and Middle East countries recently to conduct surveys, which means HMC [Hyundai Motor Company] is seriously studying [the pick-up],” he said.

Lee made it clear Hyundai – the world’s third largest car-maker -- will offer a ute in Australia, where the Korean brand would overtake Mazda to become the second biggest auto brand behind Toyota by entering the booming pick-up market.

Last year more than 215,000 utes were sold in Australia, where the Toyota HiLux and Ford Ranger were the two most popular new vehicles for the second consecutive year, accounting for almost 20 per cent of the total market.

“In early times we struggled to convince HMC of the necessity of a pick-up. Now I think we have successfully convinced them and they also understand the best-selling pick-up in the Australian market,” he said.

Hyundai has previously said it would launch a full range of ute models to rival the HiLux and Ranger -- including dual-cab, single-cab, extended-cab and cab/chassis body styles with petrol and diesel engines – and Lee is clear about what Australian consumers want.

“We are seriously working on pick-up but there are several areas we need to finalise. For example in the Australian market we need 4x4 3.0-litre diesel dual-cabs, but each market has different demands,” he said.

“We need to strike a balance between volume and profitability before deciding any new product, so what type of product and what type of engines are suitable is yet to be decided. One pick-up truck should cover as many areas as possible.”

Rendering courtesy of Kleber Silva

Hyundai Australia product planner Scott Yoon told carsales that three body styles, the requisite 3500kg towing capacity and petrol, diesel and six-cylinder power have been requested for Australia but are yet to be confirmed. All-electric and even a Ranger Raptor rival have also been mooted.

“The pick-ups Australians want and the ones that bring volume in South East Asia, South America and the Middle East are very different in terms of body style, powertrain and other specifications,” he said, adding that Europe and the US were not target markets.

“Currently everything is in the portfolio so we’ll see what happens. We will make sure that head office understands what we need in our pick-up – what body styles, what engines and what safety – and we’re waiting for approval.”

As for the key question of launch timing, which was previously expected in 2021, Lee said 2023 was the current target but Hyundai’s first ute could indeed arrive in as little as two years -- if he gets his way and crucial questions around production are resolved soon.

“If you ask me personally the sooner the better. I want to have this car tomorrow but there are several challenges HMC needs to sort out,” he said.

“First is what types of vehicles and powertrains and then what production plant – whether it’s in Korea or overseas. These are the challenges.

“I don’t know what HMC’s long-term vision is. 2023 is what we’re aiming for but if possible I want to bring it forward to 22 or 21.”

Hyundai's ute, which is believed to be under development already, could be built at the company’s main commercial vehicle plant in Jeonju, South Korea.

Alternatively – as with the HiLux, Ranger, Mitsubishi Triton, Holden Colorado, Nissan Navara, Isuzu D-MAX and Mazda BT-50 – Hyundai could establish a new factory to produce it in Thailand, one of the biggest ute markets.

Once again the Hyundai Australia chief made it clear the all-new ute would be aimed directly at Toyota’s market-leading HiLux, but cautioned it would take time to establish itself in the market – just like the iLoad, which has become Australia’s number two van after the HiAce.

Asked if Hyundai expected its ute to become as popular as the HiLux, which last year found 50,000-plus Australian homes and regularly notches up 5000 sales a month, Lee said:

“I’d love to sell such numbers, but at the early stages we start with very humble numbers like maybe 10,000 then we try to increase volumes.

“We are trying to slowly penetrate the market. There are two major products – HiLux and Ranger – and we target these two models.”

Before he was muzzled on the matter, Kia Australia COO Damien Meredith was vocal about the local sales potential of the Hyundai sister brand’s version of the all-new Korean pick-up.

Previously, Kia said it expected its first ute, which will also benefit from a local chassis tuning program, to arrive around 2022 and generate about 20,000 annual sales -- a figure that would top all but the HiLux, Ranger and Triton.

Pictured: Hyundai Palisade SUV

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