Diesel out. EV later. PHEV in! Hyundai finally firms up its dual cab ute plans for Australia

Hyundai wants to skip diesel power and electrify its first dual cab ute, which should be on-sale in Australia before the end of this decade.

But rather than go all the way to an EV as had been previously expected, the first Hyundai ute to go on-sale in Australia will likely be a hybrid or plug-in hybrid.

A pure electric Hyundai ute – as per the T7 and T10 ute projects that have been previously reported – will only launch when EVs can deliver the towing, payload and range performance to match ICE utes.

The on-again off-again plan for a Hyundai ute has gained renewed momentum locally with the arrival of new chief executive Don Romano.

The US-born Canadian is only in Australia for three years before he takes retirement and has set the confirmation of a fully capable Hyundai rival or the likes of the Ford Ranger, Toyota HiLux and incoming in-house rival, the Kia Tasman, as a key goal.

But it would likely go on-sale after he left the job.

“We are the only major brand without a ute … “There is an opportunity I think and we have to be part of that opportunity,” he said.

“My goal in three years is to get a production plan in place.

“I want a ute that can compete with the number one [Ford Ranger] and number two ute [Toyota HiLux] in the country. And my goal being here only for three years will be to get it in the product plan and not necessarily in the market.”

Romano is keen to avoid diesel because the New Vehicle Efficiency Standard (NVES) will tighten over the next few years, with fines for CO2 emissions steadily increasing.

“I do have concerns with the diesel engines simply because I do think a lot of companies right now are burying their heads in the sand when it comes down to the NVES requirements,” Romano said.

“They are going to be for some very challenging requirements if they don’t wake up and smell the coffee.

“So I want to make sure we are keeping that in mind, so that opens up to a lot of different options when it comes to drivetrains.”

However, he acknowledged diesel might have to be a short term solution to meet towing and payload expectation.

Romano is confident he can get the ute program across the line because of his strong relationship with Hyundai motor company global boss Jose Munoz and his own long history with the business.

His preferred option is to take the ladder frame used for the Tasman and developing a Hyundai ute from there.

Powertrains, and interior and exterior design would be developed by Hyundai separate from the controversially-styled Kia.

“There is nothing wrong with the body on frame platform that Kia is using for the Tasman,” he said. “It’s a great platform, I have no problem with that whatsoever, I just have to make sure the design is unique Hyundai.”

Powertrain options that could suit Hyundai’s ute that are currently in the public sphere include the new 246kW (combined) hybrid 2.5-litre petrol four-cylinder engine being released with the next-gen Palisade SUV. It is expected to also feature in the Tasman in the future.

Hyundai’s primary plug-in hybrid option is a 1.6-litre powertrain employed by the Hyundai Tucson in North America and the Hyundai Santa Fe in Europe. It does not currently sell PHEVs in Australia.

If the preferred stand-alone Hyundai ute development doesn’t pan out Romano’s back-up options are to source a vehicle from General Motors in the USA via a product sharing deal, or rebadge the Tasman as a short term stop-gap that could be on-sale in two years.

But these are very much back-up plans.

“I don’t want to do that, I want to put something out there that is uniquely Hyundai,” Romano said.