Hyundai hybrids biggest threat to Toyota's petrol-electric dominance

01/02/2025 07:00 PM

Hyundai Australia is predicting at least another year of steady sales before it could ramp up and possibly overtake Mazda on the best-selling list.

Speaking to Drive, a Hyundai Australia spokesperson was conservative with sales predictions for next year, given the state of the market and economic conditions.

Looking at sales data to the end of November this year, Hyundai Australia sales are down 5.2 per cent to a total of 66,639, which places the South Korean brand in fifth position behind Toyota, Ford, Mazda, and Kia.

The Hyundai Australia spokesperson explained the sales decline as one of the brand's best-selling models, the i30, moved up in pricing this year given sourcing switched from South Korea to the Czech Republic.

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But given i30 competes in the dwindling small car market, and customers are switching to high-riding SUVs, if the supply of the new Kona frees up, the spokesperson expects that to make up for the shortfall.

"The biggest challenge we faced from a volume perspective was the discontinuation of i30 out of the Korean plant," they said.

"Kona to a large extent has helped fill that gap, but supply issues with that model held us back.

"With full supply of Kona in 2025 we are expecting that model to perform strongly, with hybrid leading the way."

With sales expectations for next year in line with 2024, which should sit around 72,687 units based on the monthly average by the end of December, Hyundai could again be nipping at the heels of other brands.

However, Hyundai Australia is in a build phase, bedding in crucial new models that should see its sales tally climb, and even overtake other brands, over the next 12-24 months – as per its plans.

In 2024, Hyundai had three key launches that helped raise its profile in the minds of buyers – the Ioniq 5 N, new-generation Santa Fe, and Tucson hybrid, while this year was also the first full 12 months with the new Kona small SUV on the market.

Let's break it down.

While the Ioniq 5 N will not add big numbers to Hyundai's bottom line, it represents the brand's commitment to fun and engaging motoring – wrapped up as an electric car.

Hyundai has broken the mould and set a new high bar for what a sporty and fun electric vehicle (EV) can do thanks to its simulated gear shifts and exhaust noise – and this is something currently unmatched even by big-name players like Porsche and BMW, as well as EV specialists like Tesla and Polestar.

Following that was the launch of the new Santa Fe, which features a polarising design, but an elevated ambience that goes above and beyond what Hyundai – and its mainline rivals – is currently offering.

Finally, the tail end of the year saw the introduction of the Tucson hybrid, a direct competitor to Australia's best-selling family car, the Toyota RAV4, in the local market's biggest selling segment.

It is clear Hyundai is making a big push into the hybrid space, with SUVs in the small, mid and large space – as well as with the i30 Sedan – all available with fuel-saving technology, which could then also expand to its Staria people mover and Staria Load van models.

"We are pushing hard with hybrid because we believe our producing offering is extremely competitive – especially with Tucson, Santa Fe and Kona hybrids in their respective segments," the Hyundai spokesperson said.

And the momentum won't stop next year either, with the Inster EV launching early in the year to take the fight directly to cut-price Chinese-built electric models like the BYD Dolphin and GWM Ora.

The latter half of the year should also see the rollout of the Ioniq 9 large electric SUV, which shares its underpinnings with the Drive Car of the Year winning Kia EV9.

In short, Hyundai Australia is laying the basis for a robust product range that covers petrol, hybrid and electric options for customers across a broad price spectrum.

Once the long-rumoured Hyundai ute lands, which is expected to forgo diesel power in favour of an all-electric powertrain, it could finally propel the South Korean brand past Mazda and into a top-three position again.

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