Hyundai is moving towards petrol and electrified powertrains for its forthcoming mid-size ute, a direct competitor to the Toyota HiLux and Ford Ranger. The decision marks a deliberate departure from diesel, with the company aiming to appeal to both Australian and United States buyers.
The announcement comes as Hyundai and General Motors confirm a joint program to develop two new pickup models for South and Central American markets. Under the partnership, GM will lead development of a small pickup and a mid-size ute comparable in size to Australia’s existing dual-cab offerings.
“Our combined scale in North and South America helps us to more efficiently provide our customers more of what they want — beautifully designed, high-quality, safety-focused vehicles with technology they appreciate,” said José Muñoz, president and chief executive of Hyundai Motor Company.
Hyundai’s new Australian chief executive, Don Romano, said the Australian market will be a priority for the new ute, but not the only one. “We’re working at full speed on this. I mean, this is the highest issue, next to getting the tariff issue to be resolved,” he said. “The US would be definitely one of them. They have a lot of trucks in the US. North America, Australia, other parts of Asia Pacific.”
Romano pointed to recent sales data for the BYD Shark 6 plug-in hybrid as evidence of changing consumer preferences. According to VFACTS figures, BYD has sold thousands of the Shark 6 in its first few months on the Australian market, with unit-for-unit competition against the HiLux and Ranger during the same period. “It does say that there is a market for a different technology out there, and that’s been our position,” Romano said.
Hyundai has ruled out a diesel variant entirely. “Australia doesn’t need another diesel ute,” Romano said, adding that petrol, hybrid-electric (HEV) and plug-in hybrid (PHEV) configurations are under active consideration. Battery-electric (BEV) options are also being explored, though no final decision has been announced.
Romano noted that the local ute market has shown signs of softening in recent months. Data from the Federal Chamber of Automotive Industries indicates total 4×4 ute sales have dipped compared with the same period last year. “We do want Kia to be successful because right now we see a decline in total ute sales, and that could delay the development when people look at it and say ‘is that really an important segment that we need to be in?’ The answer is ‘yeah’,” he said.
While Hyundai’s ute will be developed independently, Romano acknowledged the possibility of sharing certain components or technologies with Kia’s Tasman, due for release in 2025. “Taking the Tasman and turning it into a Hyundai? We would not be doing that. Could we use some of that technology that they have, or the base of it? Possibly,” he said.
