Hyundai Motor reportedly is considering a larger SUV model for the US, a media report said.
Reuters, citing unnamed sources “familiar with the matter”, said the automaker, held back in the sports utility-centric market by a model line heavy on sedans, was considering developing larger SUVs based on the Genesis luxury sedan though a sales start would be two or three years away.
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The automaker’s poor track record with bigger SUVs, and its lack of pickup trucks, underscore the challenges in breaking into the high-margin market for utility vehicles dominated by US and Japanese rivals, the report said.
It was not certain Hyundai would launch the new vehicle, a sources said, given concerns about a lack of brand power in the higher priced SUV segment, and whether oil prices could surge again and erode the market for fuel-guzzlers.
An internal proposal last year suggested Hyundai could build on the the appeal of the Genesis with the SUV model and raise its overall brand image.
Year to date to end May, US sales of the luxury sedan rose 34.9% to 14,757 units, according to just-auto data. Hyundai sales overall rose 2.2% to 303,648.
Hyundai axed the Veracruz in the US during 2013 and will halt production at the end of July, Reuters reported, citing a union newspaper. The fewer than 5,000 sold last year all found buyers in South Korea compared with 54,325 globally in 2007.
The final US tally was one for all of 2014.
Hyundai confirmed the discontinuation of the Veracruz to the news agency but said “this does not mean we are giving up on a large SUV line-up”.
“We are considering developing premium, large SUVs based on customers’ needs. We plan to respond to the fast-changing market centered around SUVs by beefing up our SUV line-up,” it said in an email to the news agency.
