Hyundai Santa Cruz 3
Carsales Staff23 Aug 2017
NEWS

Hyundai confirms its first ute

Korean giant to produce Santa Cruz pick-up, but it won’t be sold in Australia

Hyundai has approved production of its first ute, based on the Santa Cruz concept first revealed in 2015.

The confirmation comes from the vice-president of corporate and product planning at Hyundai’s US subsidiary, Michael O’Brien, who told Reuters the green light has been given for development of a pick-up similar to the dual-cab ‘lifestyle’ concept.

The bad news – apart from the fact it’s a compact, car-based ute and not a direct rival for full-chassis 4x4 load-luggers like the Ford Ranger or larger F-150 – is that it won’t be produced in right-hand drive.

Hyundai has already ruled out an Australian release for any production version of the Tucson-based Santa Cruz, which will be designed in and for North America, on the basis that it’s not tough enough.

Hyundai Motor Company Australia (HMCA) public relations general manager external affairs Bill Thomas this morning told motoring.com.au that remains the case.

Hyundai Santa Cruz 2

“[It’s] not on the radar for us, as previously stated. It’s North America-focused, a smaller pick-up with an extending load bay.

“This researched very strongly in the US and no doubt it will sell well there, in a market where customers’ needs for bigger pick-ups are well serviced.

“Australia’s market is different: we need to go up directly against Ranger and HiLux with a strong dual-cab ute that will match or beat its key rivals for towing and payload ability.”

Indeed, HMCA continues to lobby its Korean parent for a ute that can do duty everywhere from the mines to the Melbourne CBD, but so far there’s no news of a Hyundai model to compete with Toyota’s HiLux, Australia’s top-selling new vehicle last year.

Hyundai Santa Cruz 1

The good news, according to Reuters, is that the Santa Cruz is part of a broader plan by Hyundai to reduce its reliance on traditional sedans, at least in the US – one of its most important markets.

Apart from the all-new Kona small SUV, which arrives here in September, Automotive News reports that Hyundai will launch three other new or refreshed crossovers by 2020, including a replacement for the large Santa Fe seven-seater.

As in Australia, Automotive News says Hyundai's US dealers continue to push the company to invest more aggressively in light trucks as demand for sedans like the Elantra and Sonata softens there.

The Korean car-maker’s US sales are down nearly 11 per cent to July this year, when Sonata sales fell by almost a third while the popularity of Hyundai’s SUVs increased more than 10 per cent.

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