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14 August 2023

Daily Newsletter

14 August 2023

Hyundai sets targets at new model launch

Produced at the Alabama plant for sale in North America and in South Korea for other markets

Graeme Roberts August 11 2023

Hyundai Motor Company said it aimed to sell 28,000 of its redesigned, fifth generation Santa Fe in South Korea this year after the SUV goes on sale later this month with a target of 70,000 set for 2024.

Speaking at the official launch event in Seoul this week, marketing VP Kim Yoon-soo said the new Santa Fe would be launched in the US and Europe in the first quarter of 2024, with sales targets of 135,000 and 16,000 units respectively set for next year.

Like its predecessor, the new model would be produced at the Alabama plant for sale in North America and in South Korea for other markets.

The “radically transformed” SUV has a boxy body design compared with the curved angles of its predecessor on sale since 2018. The automaker said the new model was designed to appeal to outdoor lifestyles, with a more versatile open interior, enlarged tailgate and maximised cargo capacity. With its bold exterior features, the Santa Fe also looks to retain its urban appeal.

The long wheelbase variant offers the roomiest interior, with enhanced third row seating space and a large “terrace-like” tailgate opening. The model comes with a choice of 2.5-litre turbocharged Theta III petrol engine with maximum power output of 281PS and a hybrid powertrain powered by a 1.6-litre Gamma III turbocharged petrol engine producing 180PS.

High upfront costs could be detrimental towards the growth of the off-highway EV market

The global off-highway electric market is expected to grow at a CAGR of 17.4% by 2030, per GlobalData estimates. Despite the strong growth, high upfront costs may pose a challenge. Due to the high capacity of these vehicles, they consume large amounts of power from a number of battery packs installed on the vehicle, whose high cost in turn adds to the cost of the vehicle, thereby increasing the initial cost. However, governments worldwide are offering subsidies and tax exemptions in order to help customers to counter the initial purchase cost.

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