Hyundai ute gathering pace

The clearest signal so far that Hyundai will produce its first ute has come from Edward Lee, the former chief of the Korean giant’s Australian subsidiary.

Lee, who left Sydney in January to become vice-president of Hyundai’s international sales division in January, confirmed a pick-up truck remains under serious study by the company’s product planners and engineers.

“We do not have a pick-up truck. Other than that, we cover almost every segment,” Lee told Automotive News on the eve of last week’s Seoul motor show in Korea.

“We are studying that one very hard -- what kind of pick-up truck we should produce, if we have to.

“Is it a big-size pick-up truck like in the United States or a small kind of pick-up truck?

 “We just study and submit our request to the R&D centre and the R&D centre is studying too.”

Hyundai has for years denied speculation it will join the global pick-up market, pouring cold water on rumours it will soon produce a mid-size HiLux-style ute based on a variation of the ladder platform that underpins both its iLOAD commercial van (which was outsold only by the Toyota HiAce in Australia last year) and iMAX people-mover, which was narrowly out-sold by sister brand Kia’s Carnival here last year.

However, Lee’s comments reinforce those of other senior executives who admit the company continues to investigate the merits of both a large US-oriented pick-up in the mould of Ford’s F-Series, and a mid-size workhorse ute like the HiLux and Ford Ranger.

Last year in Australia, where Mr Lee presided over a five per cent sales increase and fourth place overall for Hyundai without the aid of such a model, the ute sector grew faster than all other vehicle sales segments bar small SUVs, and was the second-biggest segment behind small cars.

Toyota’s all-conquering HiLux was the second best selling vehicle bar none in Australia last year, topped the monthly sales charts on a number of occasions in 2012 and is one of four one-tonners to regularly feature on the top-ten monthly sales lists.

But Lee said Hyundai was in no hurry to produce a ute and gave no clues as to the form it would take, or in which market it would be sold first.

“We are doing a good job in recent years without a pick-up truck,” Lee told Automotive News.

“A pick-up truck is important, but it's not a big priority for our company. But we have to consider how to respond. It is under study.

“We don't know yet which market would be the first,” he said, adding that the company could choose to build a small truck for emerging markets.

The Korean giant is known to have considered a small monococque-based front-wheel drive ute like the Proton Jumbuck in the late 2000s.

But any Hyundai ute is likely to also see duty in the huge US market, where full-size pick-ups like the Silverado are still more popular than most small cars and where Ford’s latest Ranger is not sold for fear of undermining lucrative sales of the top-selling F-150.

A mid-size ute would obviously have far greater sales potential in the booming commercial vehicle sectors of Asia and Australia, where Hyundai’s regional office – led by Mr Lee -- has voiced its desire for such a model for some time.

Whatever ute Hyundai decides to produce, it is likely to benefit from the US-South Korea free trade agreement, which began in March last year and by 2021 will phase out the 25 per cent ‘chicken tax’ tariff on commercial vans and trucks imported into the US.