Hyundai: “We do a terrible job with our EVs”

In his latest stinging assessment, Hyundai Australia’s new CEO, Don Romano, said the brand has done a “terrible job” selling EVs.

Romano, who arrived in Australia in April, has previously criticised Hyundai Australia’s sales performance and its relationship with its dealers and subsequently declared it his task to rectify those issues.

He’s also made it his job to finally deliver a dual-cab ute to Hyundai showrooms by 2029.

Speaking at the launch of the new Ioniq 9 large electric SUV, Romano was blunt in his assessment of Hyundai’s EV sales, which are dwarfed by in-house rival Kia.

“We do a terrible job with our EVs – on the record,” he said.

“We are not doing the job we should be. Our market share of electric vehicles is extremely low relative to our market share of total vehicles.

“And the only explanation for that is that we haven’t put enough focus on it.

“I can see other car companies that are selling electric cars that are doing a much better job with their EVs than they do with their ICE. We’re the opposite.

“So we spent some time in the months that I’ve been here really discussing what’s at the root of that.”

Hyundai was one of the first legacy car companies into the Australian EV market with the Kona Electric and now also sells the Ioniq 5 SUV, Ioniq 6 sedan, Inster mini-car and now the Ioniq 9 large SUV, which at $119,750 plus on-roads, is the most expensive model the brand has ever sold in Australia.

Asked how many Ioniq 9s Hyundai expected to sell, Romano was typically direct: “Not a lot”.

“I'm not looking at it to grow market share. I’m looking at it again more as a brand opportunity for us just to say this is what we stand for.

“It doesn't even make much difference on an NVES [CO2 reduction standard] because the volume is so low.

“Really this is strictly to be able to say ‘hey, we’re in the game and we’re going to stay in the game’.”

Romano identified Hyundai’s initial decision to sell Ioniq EVs direct to customers rather than via dealers as a mistake, one that’s been rectified since May 2024.

“We have a job to do to get our dealers back in the game,” he admitted.

He said the next step will be a broader EV marketing campaign to exploit that shift to dealers.

“We are looking at what we can do, probably later this year early into next year, around our electric vehicles more broadly,” he said.

“We need to really completely change the way in which we interact with our dealers and communicate and train and market and then help them market to customers that are interested in EVs.”

But Hyundai also needs to add more affordable EVs to its line-up.

The Inster is its cheapest model starting at $39,000 plus on-road costs, but it is over-priced compared to Chinese electric small cars such as the $29,990 BYD Dolphin.

The Chinese-built Elexio medium SUV appears to be an opportunity for Hyundai Australia to get some mainstream EV sales action, as it would line up in Australia’s most popular EV segment against the Tesla Model Y and its own non-identical technical relative, the Kia EV5.

carsales has previously reported that vehicle is on its way to Australia, but Romano wouldn’t confirm it.

“It’s under evaluation right now. It’s definitely a promising vehicle,” he said.

“I still have work to do to ensure that it’s the right vehicle in the right segment at the right price for our market. And I have not reached that level yet.

“I have to [make a decision] in the next 60 to 90 days. And so if you check with me in three months, I’ll give you a definitive answer.”

Romano also made it clear the Ioniq 2 – that will sit between Inster and Kona – set for debut at the Munich IAA in September will be an Aussie candidate if available.

“It’s a potential opportunity, but I don’t have enough details to get to it,” he said. “So at this point, I’m glad we’re showing it. I’m glad we’re producing it.

“Now I just need to get the details and find out, will it fit into our overall product plan and create enough demand to where it becomes a viable option for us?

“So my initial thought is absolutely. Yep. I don’t have enough details to be definitive on it.”

Join the conversation at our Facebook page
Or email us at editor@carsales.com.au