Hyundai doesn’t see much value in PHEVs for Australia

Despite the exponential growth of plug-in hybrids in Australia – PHEV sales rose by 130.9 per cent in 2025 according to VFACTs data – Hyundai doesn’t plan on introducing the powertrain tech anytime soon, primarily because it thinks plugless hybrids have a better opportunity to succeed Down Under.

Hyundai doesn’t currently offer a plug-in hybrid (PHEV) vehicle in Australia and nor will it anytime soon, with the brand’s local COO Gavin Donaldson saying Aussies prefer traditional hybrids – without the plug. 

Popular SUVs like the Tucson and Santa Fe are offered with PHEV power in other markets including the UK, however, in Australia, those SUVs, along with the top-selling Kona small SUV, are offered with petrol and plugless hybrid powertrains only. 

According to Hyundai Australia product boss Tim Rodgers, it’ll remain that way for the foreseeable, as introducing PHEV versions of said models Down Under will likely make them too pricey for Aussies.

“Look, PHEVs are certainly within our technology portfolio, but ultimately, it’s whether customers will be willing to vote with their wallets and purchase it,” he said.  

“For the brands that offer PHEVs, we can see that that’s usually the only hybrid offering they’ve got and they're pricing it at hybrid price points so I’m not actually sure if consumers are choosing that because of the PHEV element or because it’s at that price point and hybridised.  

“We mapped out and studied what our plug-in hybrid price walk would be above our hybrids, and I’m not really sure if consumers are ready for that yet, the way we would have to offer it.”

“Until we can optimise that a bit better, maybe we’d have to wait a little bit, but let’s see how NVES impacts us and how we can cost optimise that technology to then maybe offer it.” 

The mid-sized Tucson SUV starts from $40,100 plus on-road costs in base petrol form, while opting for hybrid power adds around $8000. The larger Santa Fe’s jump from petrol to hybrid is a little more palatable; lifting from $54k for the base model to $57,650 for the most affordable hybrid. 

It means adding PHEV to the mix would likely increase prices to amounts Aussies won’t be willing to pay, particularly given the competition Down Under.

The Road Ahead? 

Either way, Hyundai Australia has committed to continue offering internal combustion engines – including ICE-powered N performance cars – moving forward. 

“We won’t remove ICE out of [our range],” Donaldson said.  

“We just see we have greater opportunity to sell more hybrids. We’re also transitioning to where the demand is. 

“We still have ICE available in?Kona,?Tucson?and?Santa Fe, but we’re seeing greater demand for hybrid.” 

Join the conversation at our Facebook page
Or email us at editor@carsales.com.au