Hyundai’s N sub-brand more important than NVES

Hyundai’s high-performance N cars were the major contributor to its more than $4 million of accrued NVES penalties, with the brand’s local COO saying it would’ve otherwise earnt credits, as opposed to ‘liabilities’. Either way, internal combustion-powered N cars aren’t going anywhere, but they may get more expensive.

Hyundai accrued 84,563 liabilities, or interim emissions values (IEVs) in the first six months of the New Vehicle Efficiency Standard (NVES) being in effect, which equates to around $4.23 million if it pays up by 2028.

The Korean brand was amongst the hardest hit according to the first official NVES performance data released this week, which saw legacy carmakers such as Mazda, Nissan and Subaru top the list of penalties, amassing millions of dollars in fines, trailed by Hyundai and General Motors.

But, speaking to carsales at this week’s launch of its new Elexio electric SUV, Hyundai Australia COO Gavin Donaldson said the company would’ve been in the green had it not been for the N performance range.

“I look at it and go, ‘we also got a fine’,” he said when quizzed on how he expected Mazda, Nissan and Subaru to deal with the situation.

“But our fine was… basically we have an N brand. For us, we think it’s a great brand; that high-performance product is outstanding. [But] our N products were probably about, what, 5.1 million in penalties.

“If we take that out, we were in credit. So, I don't know their strategy is, but for us, we were in a deficit purely and simply because we have a brand that we want to keep in Australia.

“I really can’t speak for what the opposition will be; they’ve got their strategies and their play. I think the Australian public will still buy what they want to buy when it’s all said and done.

“We think there’s a place for a high-performance internal combustion engine, so they may have other strategies when it’s all said and done.” 

Mazda was the hardest hit of any brand in Australia and currently holds the largest balance, at 508,517 IEVs – totalling around $25m – but says it’s the cost of doing business Down Under. 

“The interim NVES liabilities are a necessary cost to the business that are accounted for in our overall forecasting, but ultimately, they change nothing in relation to Mazda Australia’s main priority – which is to continue to furnish our customers with an abundant choice of models and powertrains that match their needs,” a Mazda Australia spokesperson told carsales.

The Road Ahead? 

Production of the pint-sized i20 N is scheduled to wrap next month, leaving the venerable i30 N hatch, i30 Sedan N and fearsome IONIQ 5 N crossover on their own until the new IONIQ 6 N super sedan arrives in the second quarter. 

As for the remaining models, especially the i30 duo, Donaldson said there could be more price rises on the horizon – prices have already been creeping up over the past 12 months. 

“We’ve had some N prices go up. I’ll never say they won’t but in some cases they will,” he said. 

“But we have a great N community that are just proud and want to drive those cars. 

“We won’t remove the ICE out of Kona, Tucson and Santa Fe.  

“We just see that we have greater opportunity to sell more hybrid [vehicles]. I think the Australian public are even moving towards hybrid so therefore, we’re transitioning to where the demand is.  

“We’re seeing greater demand for hybrid, so we’ll continue to push the hybrid message, but ICE is still going to play an important part in our product portfolio.  

“We’ll work with the Australian public. They’re going definitely towards hybrid. We saw our growth last year and we’ll continue to see the same growth this year we think.” 

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