Hyundai’s ‘global’ hybrid ute potentially delayed as local boss claims “it can’t be another diesel”

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News continues to trickle out slowly on Hyundai’s now-confirmed first-ever body-on-frame ute, though recently appointed Hyundai Motor Company Australia chief executive officer, Dom Romano, continues to quash hopes that popular diesel power will be an option at all for Aussie buyers.   

“[The future ute model] can’t be another diesel,” Romano told Chasing Cars at a recent media event. “I don’t think Australia needs another diesel [ute]. If you look at utes [in terms of sales] overall, you’re going to see a decline in volume this year.”

“And I don’t think the world needs another diesel ute.”

What’s becoming clear is that Hyundai’s ute is a global development.

And whatever form it takes, Hyundai Australia will still have to campaign head office in Korea for its inclusion into the local market, using a powertrain that best suits both customer trends and the impact of the rollout of the Australian federal government’s New Vehicles Efficiency Standards. 

“Australia is a big part of this, but [Hyundai Motor Company] also has a lot of other markets. And unlike Kia Tasman…we would share this truck with the US because Tasman doesn’t go to the States,” Romano explained.   

“I can’t answer [about diesel viability] from an R&D perspective on a global basis but…our position here in Australia is that we don’t need another diesel.”     

“Considering what [Hyundai globally does] and what we do very well, we have to look at [the] options. And I can’t tell you whether that’s a PHEV (plug-in hybrid), an HEV (hybrid) or BEV [fully electric], but those are the options that have to be considered…those are the areas that give us opportunity.”

Also, adopting ICE or hybrid powertrain solution(s) best fit for global consumption, particularly for key North American and Asia Pacific markets where the ute would be offered, would certainly make Hyundai Australia’s business case to Korea more streamlined and ease pressure on the brand’s strategies around future NVES targets.

Recent sales success for BYD’s petrol-electric Shark 6 ute is also very much on Hyundai Australia’s radar.

“We’re watching very closely – you can see what the Shark has done,” Romano said. 

“Look at what [BYD] has sold in the last three months, and then look at how Hilux and Ranger have come down in the last three months – it’s almost unit for unit. It does say that there’s a market for a different technology [to diesel] out there.”

Hyundai is cheering on Kia Tasman to success 

Asked as to whether the emerging sales fortunes of the newly launched Kia Tasman might influence any push for diesel power in Hyundai’s ute, Romano responded “no, I don’t think so”.

However, Hyundai Australia admitted that it will be keenly watching the fortunes of the Tasman ute nonetheless, and hoping for success for its corporate cousin from the sidelines. 

“We do want [rival] Kia to be successful [with Tasman] because right now we see a decline in total sales [utes],” Romano revealed. “It’s a segment we want to be in [and] we want to be able to point to our sister company [to Hyundai Motor Company in Korea] to say ‘look at the success they had’.”

Could tariffs railroad Hyundai’s new ute timing?

As reported by Chasing Cars months back, Romano had confirmed that the decision to refit Tasman or go with GM product would be made by the end of this year. Either way, Romano confirms it will be “mid-size” – aka, Ranger, Tasman, Shark 6 size – and “one tonne”. 

However, timing for a release, Romano explained, is a moving target.

“The only delay right now that we have is not knowing what’s going on with the [shifting global trade] tariffs,” Romano said, adding weight to the narrative that Hyundai’s ute fortunes locally are intrinsically tied to those globally.

Romano explains that while tariff outcomes between the US and Japan, and the US and Europe, appear to be resolved, “we do not have an agreement [between] South Korea and the US [yet].” (It’s reported that the US and South Korea arrived at a 15 percent tariff ‘trade deal’ days after this interview.) 

“That’s going to have ripple effects across the globe for [Hyundai Motor Company]…so there are a lot of issues at play right now with our company on a global basis… Let’s hope [global tariffs resolution] all gets resolved soon and I can get back to you and say, okay, here’s where we’re at [with timing].”  

“We’re working [on the ute] at full speed…[but]…if it takes an extra year, it’s worth the time.”