Hyundai turns its back on i10 for Oz

Hyundai is not making it official yet, but the odds of the i10 light hatch making it to Australia have effectively dwindled to nothing.

Just over a month ago we reported that currency exchange rates and different market requirements had relegated the i10 to the status of also-ran.

As we reported back then, if Hyundai could additionally build the European i10 in Hyundai's Indian plant at Chennai, that car could land here at the right price to be viable in the local market. But that's not going to happen, says Hyundai Australia's Public Relations General Manager, Bill Thomas.

Speaking with motoring.com.au for the launch of the Veloster Series II last week, Thomas did acknowledge that the European i10 needs to be built in a low-labour-cost country like India to be profitable in even a developed country like Australia.

"If we could get the same car built in India then that would work," he said.

But the i10 nameplate represents two different types of cars. The one manufactured in India is built down to a price, whereas the i10 for Europe is more of a premium offering, such as Toyota's iQ – which is also not sold in Australia. Thomas explained that Hyundai has a different approach to different regional markets – like Brazil, for instance.

"[Hyundai is] very keen on not only building, but also designing cars for particular markets. If you look at Brazil, they have a factory there, and their HB20 and HB20X were designed there very specifically for that market.

"Hyundai's thinking globally isn't like Ford's where you have the 'One Ford' policy. Obviously platforms are shared, but one of the good things about the company is that they like to focus vehicles in on particular markets – and our local suspension tuning programme is an example of that.

"They're prepared to support that kind of focus, so the Indian [i10] is not something we would take, and it's not likely that they would ever build the European car in India."

Providing further explanation, Thomas indicated that the Indian market for cars like the i10 can be even more price-sensitive than in the same segment in Australia. This is part of the problem for Australian consumers. We like high-spec comfort and convenience features – even below $15,000 – but that adds to any car's landed cost. In essence, we want the Euro-market i10 at the Indian-market price. The Euro-market i10, built in India, would cost too much for the Indian consumers, where that market segment is extremely competitive.

Hyundai Australia is much more enthusiastic about the ix25 small SUV – a vehicle that will push the Tucson (formerly ix35) upmarket in the local range. If there's one stumbling block with the new vehicle, which will be built for European and other regional markets as well as China, it's the delay in bringing it here.

"We're looking at a two-year delay before we get our version of the ix25, which will be a European vehicle," says Thomas.

"Not sure just yet where it's likely to be built, but it's likely to be the Czech Republic, which is obviously more of viable for us. If that's the case, then that is a car that we obviously will take – it's a booming segment for Australia. We definitely want to be playing in there, but we just don't have the product at the moment."

The ix25 is shaping up to be a popular nameplate in Hyundai's global product portfolio. It was originally developed for the Chinese market, but in addition to Europe it's also being built in India, where it will sell in showrooms alongside the i20 Active revealed two months ago. Hyundai Australia will source the ix25 from somewhere in Europe, most likely the Czech Republic, Thomas suggests, and the small SUV will adopt the new styling first previewed with the Intrado concept at Geneva last year.