Hyundai shifts upmarket

Hyundai Australia is moving further away from its ‘cheap and cheerful’ image, with the all-new Kona compact SUV its first SUV offered locally without either a diesel engine or a price-leading variant using a manual transmission.

The Kona, Hyundai’s first global compact SUV, will arrive in Australian showrooms in September. At launch, the range is limited to an entry level, front-drive model with a 110kW/179Nm, 2.0-litre four-cylinder petrol engine and six-speed automatic transmission, or an up-market all-wheel drive version with a 130kW/265Nm turbocharged 1.6-litre four-cylinder petrol engine and seven-speed dual-clutch automatic transmission.

“It’s our first mainstream vehicle to be kitted up in that way (no manual or diesel) so it will be interesting in time to see how that goes,” Hyundai Australia chief operating officer Scott Grant revealed at the launch of the new baby SUV in South Korea.

Despite the lack of a diesel or self shifter - available in other markets – Mr Grant is confident the eye-catching Kona will attract new buyers to Hyundai, and won’t steal too many sales from the popular and similarly-sized i30 hatchback.

He added: “98 per cent of vehicles are going out with an automatic (transmission) or DCT offering, so I’m not sure it will not hurt us very much.”

However, the auto-only strategy will not flow to other Hyundai models, especially sportier vehicles like the new i30N where “manual transmission remains pretty important”.

Mr Grant admitted supply constraints may limit the number of Kona SUVs coming to Australia during the next 12 months, but an annual target of 10,000 sales “is possible”.

This would see the Kona ranking among Australia’s top five best-selling compact SUVs (Mazda CX-3 and Mitsubishi ASX both topped 18,000 sales last year, followed by Honda’s HR-V and Nissan Qashqai at more than 12,000 each).

While the Kona EV will arrive next year, consumer demand will dictate whether turbo-diesel and/or three-cylinder petrol models, available internationally, will head this way at some point.

At this point, Australian pricing and specifications have yet to be finalized, but Mr Grant confirmed competitive pricing will be part of the Kona’s appeal, suggesting a starting price of $25,000 or lower “would be ideal”.

He expects the Kona “to be at or near the top of its class for capability and desirability, not just for price and value” and hopes the all-new compact SUV will provide Hyundai Australia with “a strong entry into a booming segment”.

“(Our) Aussie research suggests that Kona is a vehicle that manages to be distinctive to look at, inside and out, but not so challenging that it turns people away,” Mr Grant said.

“Kona will bring new customers to Hyundai, people who haven’t yet experienced the brand.”