DETROIT MOTOR SHOW: First Hyundai ute raises eyebrows

Australian Hyundai execs admit Santa Cruz concept is not the sort of ute it expected or wanted

Hyundai has come clean on its intention to enter the pick-up market, but the South Korean brand surprised many by revealing a car-based pleasure seeker rather than a utilitarian workhorse at the Detroit show.

The HCD-15 Santa Cruz even surprised Australian Hyundai executives who travelled to the US to see the new concept unveiled.

They had been told the US-designed show car was a 'lifestyle' pick-up concept, whetting their appetite for a light commercial ute that would take the company one step closer to wrestling Australian market leadership from Toyota.

But rather than previewing a potential rival for tradie trucks like the all-conquering HiLux, the Santa Cruz emerged looking more like a Suzuki Mighty Boy than a Ford Ranger.

Based on the same monocoque platform as Hyundai's compact ix35 crossover, rather than a separate ladder frame like trucks such as the Ford Ranger, the HCD-15's small but extendable tray and tight five-seat cabin is designed for weekend adventure not work.

"Santa Cruz, by design, isn't an alternative to a truck, so towing, payload and ground clearance were not primary goals," said Hyundai Motor America director of corporate planning Mark Dipko.

"Rather, Santa Cruz is intended to attract CUV [SUV] and sedan buyers who are seeking greater utility, without the compromises that traditional trucks often require."

Hyundai says its ute is deliberately different to both the top-selling full-size pick-ups that litter North American roads and the mid-size single- and dual-cabs imported to Australia from Thailand, China and, in the case of Volkswagen's Amarok, Argentina.

"Santa Cruz isn't trying to be a truck. We're not interested in ploughing the same ground as others," said Dipko. "It may not be the vehicle the industry expects but it's most certainly the vehicle consumers want."

Hyundai says the Santa Cruz – a name previously used by the brand in the US for a large SUV – is the result of US market research that shows pick-up market share is declining and that fewer young people are buying them. It claims only 10 per cent of pick-ups are bought by women, who buy 40 per cent of SUVs.

HMA chief designer Christopher Chapman said the Santa Cruz, which features four doors, five seats and the same footprint as the ix35, is "small for a reason" and requires "no compromise in comfort or parking manoeuvrability".

However, he admits space is tight in both the rear seat – thanks to a low roof height and rear-hinged 'coach' doors – and the tray, which is lined with plastic and features an extending rear section to accommodate small motorcycles with the tray down.

"You can sit in the back but it's not for the long haul to the camp site."

The car is fitted with a 140kW four-cylinder turbo-diesel and Hyundai's HTRAC all-wheel drive system, and also features cargo securing points in the tray and wheel-arches.

"Everyone knows what a pick-up is," said Chapman. "This is a new take on an old concept. When you're driving a pick-up you're constantly reminded of that.

"But this is for people who can drive it to work, but don't want an enclosed CUV which limits them. We wanted it to be manoeuvrable in the city.

"It has a real duality. We didn't want it to be too bombastic or too soft. We wanted to hit the sweet spot. This concept started with the customer – unibody, versatile. The priority was stance."

Chapman said the concept could enter production relatively quickly almost as is, with only a few changes such as the 22-inch wheels, but could not confirm the production viability of the extending tray bed, which was not fitted to the one-off show car.

"We could go with the coach doors and the extendable bed is a concept, taking inspiration from kitchen doors. There are obviously exaggerated areas there for show purposes, but it's pretty much there. Dimensions are close but we could look at rear seat packaging.

"We built it to gauge reaction but this could be built quickly – Hyundai-fast."

Asked if Hyundai intended to sell the new model in export markets if it's approved for production, Chapman said: "Absolutely. Part of the reason for it being a concept is so we can sell into other markets... Europe, Australia, India, Thailand."

He would not rule out the creation of a more traditional mid-size ute or a full-size pickup, but indicated Hyundai's research had led firmly to a lifestyle vehicle like the Santa Cruz.

"If we wanted to do a full-size pick-up we'd build a concept to test it," he said.

HMCA chief executive officer John Elsworth was less enthusiastic about the concept.

"Obviously there's a bigger market for more of a workhorse in Australia. We'd like a commercial vehicle, not a passenger derived ute," he said.

HMCA has been lobbying HMC for years to be able to sell a ute, but Elsworth said the Australia division only heard about the concept a few weeks ago and was not involved in researching the concept.

"Conceptually we knew it was a more lifestyle oriented vehicle but we had not seen any images. It was highly secretive – this is the first time we've seen it.

"They did their research in the US, but we haven't had a conversation with them about it. That typically happens globally with concept vehicles. There's not a lot of chat – it gets done in secret.

"We will have input – not into the design but we would be asked about [sales] volume. That's how it happens with all future products – our product planning team has input into the global business case."

Elsworth said that, as it stands, Hyundai's ute will be a niche model in Australia for the foreseeable future, but that it could appeal to disenfranchised buyers of Holden and Ford's locally made passenger car-based utes once production of both models ends by 2017.

"That's the concept but it's still a good opportunity. I think it's incredible innovative. Having driven utes for a long time, I'd find it very liveable. I think it's a cool concept for a niche when Holden and Ford don't make utes.

"There's about 180,000 utes sold in Australia [annually]. Of that segment about 15,000 or 10 per cent are passenger car-based. That will eventually go and there's a niche within that 180,000.

"We'll see whether there's a market opportunity. Who ever thought 10 years ago compact SUVs would be so popular?

"But the volume in utes is with the more workhorse style vehicles and at this stage it would be a niche. Not too many of these would be going down the mines."

Full coverage of Detroit motor show at motoring.com.au

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DETROIT MOTOR SHOW: First Hyundai ute raises eyebrows

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