Korean automakers Hyundai and Kia are making significant investments in crossovers, anticipating substantial returns. Recent interviews with the global CEOs of both companies, featured in Automotive News, reveal that their strategy heavily centers on SUVs. They aim to establish a comprehensive crossover lineup by the end of next year, capitalizing on the surge in crossover popularity that has been sweeping across the U.S. and beyond.
Both brands have a history with SUVs, having entered the crossover market early on with models like the Kia Sportage and the Hyundai Santa Fe. However, as the crossover segment becomes increasingly competitive, Hyundai and Kia are determined to stay relevant in the rapidly evolving market.
“Our approach is to introduce more SUVs,” said Hyundai Motor Co. CEO Wonhee Lee in an interview with Automotive News. “We will develop a complete lineup. We aspire to enhance our adaptability. As the SUV market expands, we will be prepared to match that growth.”
Despite having a range of crossovers, Hyundai and Kia still derive most of their U.S. sales from smaller vehicles. The brands have gained a reputation for affordable compact cars, but many American consumers are increasingly choosing Japanese, German, and American companies for their crossover needs. Lee notes that the brands face challenges with consumer awareness in the U.S. SUV market, aiming to boost SUV sales to approximately 60 percent of Hyundai’s U.S. sales within the next three years.
This strategy includes the recently updated 2019 Hyundai Santa Fe, which has seen notable enhancements. Additionally, Kia is set to expand its crossover offerings with the three-row Telluride, expected to launch in Spring 2019, alongside a new compact crossover inspired by the SP Concept later next year. Variants of both models are anticipated to appear in Hyundai’s lineup as well.
What about the potential for pickup trucks? While there was some indication of a Hyundai pickup in 2017, detailed plans have yet to emerge. If the intent is to offer utility models across both brands, Kia could potentially receive its own version of a crossover truck upon production.
Understanding the intense competition posed by the Big Three U.S. automakers in the full-size pickup segment, Hyundai’s trucks would likely adopt a design similar to the Honda Ridgeline, featuring unibody construction and front- or all-wheel drive, as well as a slightly smaller build. According to Lee, the earliest we might see a Hyundai pickup on the market is 2021.
“It’s a new segment, so we don’t have any data to instill confidence,” Lee explained to Automotive News. “However, we believe we can carve out a new niche for pickup trucks within the U.S. market.”
Hyundai and Kia have demonstrated remarkable improvements in quality and innovation in recent years, yet their sales figures have not mirrored this progress. The shift towards a crossover-centric strategy could be exactly what the brands need to gain greater recognition and acceptance among American consumers.
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