Hyundai may abandon ANCAP

Hyundai Australia says it may abandon its commitment to gaining five-star ANCAP ratings for its entire passenger vehicle range.

Instead, it is considering settling for a four-star rating to ensure its cheaper models maintain competitive pricing.

“ANCAP is getting more and more stringent and that’s going to make it more challenging,” Hyundai Australia chief operating officer Scott Grant told carsales.com.au.

“If we need to be able to bring a high-quality product to market at the right price-point that can appeal to consumers and is four stars, is that really the end of the world?”

ANCAP, the independent local crash testing body funded by government and private motoring associations, has been steadily upping the requirements for new models to achieve a maximum five-star safety rating.

From 2018, a car without autonomous emergency braking (AEB) and some form of lane support system such as lane keeping assistance has no chance of achieving a five-star crash test result.

The minimum five-star threshold will continue to rise in coming years with more driver-assist systems being added to the list.

More equipment adds more cost -- something models like the Hyundai Accent, i30 and Kona compact SUV are less able to absorb in cut-throat entry-level segments where even a few dollars can win or lose a sale.

The most affordable versions of the i30 – Hyundai’s top-selling model – are not fitted with AEB, which is standard only from the Elite variant level. Yet all i30s come with a five-star ANCAP rating — with a 2017 date stamp.

“It is no good having the most expensive, brilliant, high-tech, perfectly safe car that no-one can afford to buy,” said Grant.

“We continue to try an enhance the safety while keeping the value and that’s hard to do. And it’s getting harder and harder.”

ANCAP chief James Goodwin defended the process: “We don’t apologise for continuing to raise the bar on vehicle safety, and it’s encouraging to see vehicle brands have been meeting ANCAP’s increasingly stringent standards,” he said.

ANCAP has conducted a hard-nosed campaign for more than 20 years to gain its high-profile position with the car-buying public as an authority on automotive safety in Australia.

If Hyundai, Australia’s number three retail brand, did choose to abandon the chase for five ANCAP stars on some models, it would be the most significant setback the program has had in years.

Grant stressed Hyundai supported what ANCAP was “trying to do”, but called for a review of how it was going about it.

“I am hoping that the people who design these standards give us some consideration. Some practical understanding of these issues is useful and some open and transparent discussion is helpful.”

Grant acknowledged a four-star rating would likely be publicly slammed by ANCAP, which has savaged poor results such as the two-star rating for the Ford Mustang in early 2017.

It has also criticised brands that have not co-operated with its safety testing program.

“At the end of the day I am not concerned about that,” said Grant. “I am not concerned about the motoring writers beating up on us over those positions.

“We have to be responsible and take a leadership position for our business and for our brand with consideration to — but not at the behest of — others that are involved such as motoring writers, ANCAP or other parties.

“We have to take that responsibility, otherwise trying to placate all the different stakeholders, we could just run ourselves into the ground and disappear.”

Grant made it clear a four-star safety-rated Hyundai may not be far away.

“Every new model is an issue for us to consider. Every new model is a consideration to the amount of spec that goes into the car to get a five-star rating versus the cost differential and the effects of other things around a four-star rating and market pricing, positioning and competitors and other things.

“I think every car company has the same issues. Everyone would love to add all the same safety features on every car from the ground up, from an entry-level proposition.

“But that can push $2000 or $3000 onto an $18,000 motor car and is a big effect.

“$1000 here and there around that $20,000 threshold makes a big difference in terms of volume and people’s ability to reach that far.

“There are plenty of good examples of motor cars that are rated four stars and they are terrific motor cars.”