NVES number-crunching keeps Hyundai on target
BY MATT CAMPBELL | 3rd Jun 2024
HYUNDAI Motor Company Australia (HMCA) is expecting to split its sales pie into three sizeable pieces by 2030, with equal parts apportioned to battery electric vehicles (BEV), internal combustion engine (ICE) models, and hybrids.
Speaking at the launch of the brand’s newest hybrid model line – the Santa Fe large SUV – HMCA chief operating officer John Kett said that the business is readying itself to be compliant with the NVES regulations from day one.
“The NVES regulations that were passed are certainly going to play a stronger role in the way in which our portfolio and our go-to-market strategies are framed,” he said, indicating that planning is well underway to attempt to meet the standards in place.
“Our gut feeling is that by 2030 if you're not at a minimum of 33 per cent EV, 33 per cent HEV (hybrid and plug-in hybrid), and 33 per cent ICE, then you're going to have real trouble complying with those standards.
“Quite frankly, we think you need to be a little bit more aggressive around EV mix to get the job done. So it's still a long way away, but we need to start implementing those strategies now to make sure as we enter into next year, we're compliant from day one,” Mr Kett said.
“We feel well positioned. We've launched our i30 Sedan HEV, we've launched our Kona HEV, and today we get to celebrate the Santa Fe HEV.
“We exited 2023 in 16th position when it came to hybrids. We feel well positioned that by the time we exit 2024 we should have reclaimed that position in the top three in terms of our hybrid business,” he said.
Mr Kett pointed out that already in 2024, Australia is seeing a dramatic shift towards more hybrid vehicles being sold, with the sales numbers to the end of April indicating a 138.2 per cent increase year-to-date, while plug-in hybrids have also boomed 135.6 per cent thanks to incentives around Fringe Benefits Tax relief.
The news is good for a brand like Hyundai, which has just introduced the Santa Fe large SUV in hybrid only at launch (a turbo-petrol is coming later in 2024), and there is also a refreshed Tucson medium SUV with petrol-electric HEV powertrain options coming, and a mild-hybrid facelifted i30 due soon, too.
“ICE is largely flat, probably four per cent up on last year, and if you backed out utes, and you backed out body-on-frame SUVs, in fact, ICE is coming.
“So we’re now starting to see this shift in the industry as it moves to hybrids and certainly through to EVs,” he said.
The market leader remains Toyota Australia with a dominant position in the petrol-electric hybrid business.
Hyundai’s South Korean cousin, Kia, is staking its claim more in the BEV space, with hybrids reserved for the higher-specification grades of some of the brand’s biggest, most expensive models, though decision-makers in the business have stated that more hybrid variants will be launched in due course, but that it is fighting for petrol-electric supply as it stands.
The Santa Fe launches with 1.6-litre turbo-petrol engine and electric motor with a compact lithium-ion polymer battery pack that allows the vehicle to drive in electric-only mode at a mix of speeds.
Its electric motor is integrated into the six-speed automatic transmission, and the Santa Fe is offered with a choice of front-wheel drive in the base grade, or all-wheel drive across the base, mid and high-spec versions.
Fuel consumption for all Santa Fe models is stated at 5.6 litres per 100km on the combined cycle.
Hyundai did offer a petrol-electric version of the previous-generation Santa Fe, too, but it was limited in its appeal and in terms of supply.
