Countdown to Hyundai ute begins

Hyundai has a timeline for its pick-up. And while the vehicle could still be more than two years away, the clock is definitely ticking.

Speaking to motoring.com.au in Korea this week, Hyundai Motor Company International Operations Division executive vice president, BK Rhim, said the automotive giant could start work on the all-important light commercial vehicle within two years.

And unlike previous concepts that have focused on a lifestyle theme, Hyundai is now embracing the view that a ute needs to double as a workhorse.

Rhim is one of Hyundai’s most senior executives and effectively controls many of the Korean brand’s key marketplaces.

“It could be in two years that we start work,” Rhim said when quizzed on the timeline for the vehicle.

“It is an important vehicle for many markets - especially Thailand, South East Asia and your [Australian] market."

Although Hyundai has shown concepts of a Tucson-based ute aimed at the US market, local sources have already ruled such a vehicle out.

In Australia, and globally, demand is for a one-tonne commercial available in both single and dual-cab configurations. Such vehicles are key entrants in growth markets including south-east Asia, South America and Africa. These are all markets under Rhim’s purview.

However, one of the challenges ahead of Hyundai’s plans for a vehicle to take on the likes of HiLux and Ford Ranger, is production capacity. Currently Hyundai’s plants both in Asia and Europe are at capacity.

That begs the question about where such a vehicle would be built.

While Hyundai has announced intentions to build capacity in China (up to five plants eventually), it’s understood the majority of that capacity is earmarked for passenger cars.

When quizzed by motoring.com.au, Rhim admitted Thailand would be an ideal location to produce a range of light commercials. Currently, Hyundai does not produce vehicles in the region.

By definition, therefore, the countdown clock not only includes vehicle design and development timelines but also the billion-dollar investment and construction of a purpose-built production facility.

Hyundai Australia has made no secret of its desire to have a vehicle to take on Australia's best-selling utes. In 2016, the market’s top-selling vehicle was the Toyota HiLux. The iconic pickup sold more than 40,000 units. Factor in the Fortuner off-road SUV (based on the HiLux) and the volume is approaching 46,000.

Achieving pick-up volumes equivalent to even half Toyota’s HiLux would be a step-change increase of close to 25 per cent for Hyundai Australia based on 2016 VFACTs figures.

Hyundai insiders say the first clue to serious development of a HiLux-style off-road utility was the addition of a heavy-duty 4x4 facility at the automaker’s main Namyang proving ground.