Hyundai Australia has axed the i20.
Currently the Korean brand's cheapest model, the five-year-old hatchback was previously expected to be superseded by an all-new Euro-sourced model in 2016.
Instead, Hyundai's light-car role in Australia will instead be filled by a 1.4-litre version of the current Accent.
It will be priced from $14,990 – down from the current 1.4-litre i20's starting price of $15,590 and the existing 1.6-litre Accent's base price of $16,990.
Nor will Hyundai introduce the pint-size i10, despite the fact its sister brand Kia plans to release its mechanically related Picanto micro-car.
Hyundai's local COO John Elsworth confirmed the exit of the i20 at today’s launch of the new Tucson crossover.
Elsworth said the move was necessary as the company had ruled out an Australian introduction for the new-generation i20 and updated i10 on “commercial grounds”.
“We’ve been unable to reach an acceptable commercial agreement with our colleagues," he said.
“There are two factors – the exchange rate and the logistical costs to get the cars to Australia,” Elsworth told motoring.com.au.
The i20’s replacement, the Accent Active 1.4, will be offered in both five-door hatch and sedan variants. A CVT auto model will be offered at $16,990 (all prices are recommended retail, plus on-road costs).
Elsworth would not confirm the drive-away pricing for the new car, however, expect Hyundai to significantly sharpen its pencil to maintain momentum in the value-driven segment.
“We still need to have a discussion with our dealers,” Elsworth said.
“As sales and marketing people that’s what we do. We’ll manage it [pricing] – if we have to tweak the dials we will,” he said.
The outgoing i20 is built in India and has been on sale here since 2010, when it replaced the hugely popular Getz, but the smaller i10 has never been sold here. Motoring.com.au understands only a relatively small number of i20s remain unsold.
Hyundai Australia has locally evaluated both the i10 and the new-generation i20, which is available in Europe in five-door hatch and three-door 'coupe' forms, forms the basis of Hyundai's World Rally Championship assault and is expected to underpin the Korean giant's first N-branded performance model.
As late as April this year it was still working to secure the Turkish-built vehicles for this market.
The Accent, meantime, is no spring chicken. The current RB-series has been on sale since 2011.
The demise of the i20 and the move of the Tucson from the small to medium SUV segment sees the company’s footprint in the cheapest end of the new car marketplace significantly eroded.
Elsworth says a new compact SUV is “at least a couple of years away”.