Hyundai to close the gap with Toyota in hybrid sales

Hyundai is eyeing fresh opportunities in Australia’s fast-changing new-car market as it looks to bolster its hybrid model mix and barge its way into the list of sellers of increasingly popular petrol-electric technology.

At the recent launch of the new-generation 2024 Hyundai Santa Fe – which will initially be a hybrid-only model – the Korean car-maker said it wants to become Australia’s third biggest supplier of hybrid vehicles, closing the gap on market leader Toyota.

“[Hybrid] is the story of the day and dominating the mix change across the industry,” said Hyundai Australia COO John Kett, who nominated the upcoming New Vehicle Efficiency Standard (NVES) that comes into play in 2025 as something that will change the make-up of the industry.

He believes hybrid electric vehicles (HEVs) will continue to play a bigger role as manufacturers work to lower emissions.

“We feel well positioned, we launched our i30 sedan HEV, we launched our Kona HEV… Santa Fe HEV… [in the] middle of July we’ll have the Tucson HEV up and running and by mid-July the i30 hatch will return to this marketplace as a mild-hybrid.”

Kett said the goal is to go from effectively being a niche player in the hybrid space to becoming a dominant HEV player.

“We exited 2023 in 16th position when it came to hybrids,” he said. “We feel well positioned that by the time we exit 2024 we should reclaim our position in the top three in terms of our hybrid business.”

Of course, Hyundai faces a long road in climbing back up the broader sales chart Down Under.

In 2023 Hyundai slipped to fifth in the overall sales race, overtaken by Ford and sister brand Kia, with Toyota and Mazda occupying the top spots.

In the first four months of 2024 Hyundai is still behind Ford and Kia and has also been overtaken by Mitsubishi, but Kett points to an influx of new model arrivals, including the all-important i30 hatch.

The hybrid push is part of Hyundai’s plan to avoid looming penalties for thirsty vehicles by ensuring the brand’s fleet-average carbon dioxide emissions are below the stipulated limits.

Kett says the intense work currently being done on future product planning – and bolstering Hyundai’s hybrid mix – is to “make sure as we enter into next year we’re compliant [with NVES] from day one”.

Hyundai also believes opportunities are emerging as the market changes, which could potentially see some big-volume brands take a hit to their sales aspirations.

“There’s no doubt that some of the historical top 10 brands that aren’t evolving maybe as quickly as we are in terms of HEV and EV will be at some risk,” said Kett.

He pointed to the petrol and diesel vehicle market and how quickly that’s changing, especially with city-focussed SUVs and traditional passenger cars such as sedans, wagons and hatchbacks.

“We are starting to see this shift in the industry as it moves to hybrids and EVs,” said Kett, pointing out that sales of purely combustion-powered vehicles had eased recently – even before the introduction of NVES emissions standards.

“[The market is] shifting but there are still opportunities everywhere,” he said.

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