Hyundai could ‘do a Toyota’ and cull its ICE models

Hyundai Australia could ‘do a Toyota’ and replace almost all its petrol and diesel internal combustion engine (ICE) passenger models with hybrid versions, mirroring a move its Japanese rival made here in mid-2024.

Speaking to CarExpert, Hyundai Australia chief operating officer Gavin Donaldson said such a move makes sense, but could also spell the end of some current models.

“Would we consider making our mainstream cars more hybrid? I think that's inevitable. I think moving out of ICE into hybrid and EVs [electric vehicles] is inevitable,” the Hyundai COO said.

Hyundai Australia is up 5.1 per cent year-on-year to the end of May 2026, including a 111.4 per cent jump in sales of its EV models, but its sales are led by hybrid offerings. These make up 48 per cent of its total sales.

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“There’s no doubt there’s a transition in the Australian market going to hybrid, so for us, we’ve been able to grow that because you could say a powertrain is like having an extra product as well," said Mr Donaldson.

In 2024, Toyota Australia made hybrid power standard in popular nameplates including its Corolla, Corolla Cross, and Camry sedan, as well as its RAV4 and Kluger SUVs. Effectively, it axed petrol power in all vehicles where there was a hybrid option available.

That left pure combustion power only in performance models such as the GR Corolla and GR86, with diesel power still available in the HiLux ute, LandCruiser Prado, LandCruiser 300 Series and HiAce commercial van.

“I think Toyota has done exceptionally well with how they've been able to transition everything to hybrid, and it’s been very successful for them,” Mr Donaldson said.

“Right now, our hybrid is going to be selling more than what we do in ICE, and that growth will continue. There may be some products that we get to in the end that are just pure hybrid.”

Hyundai's only diesel-powered models, the Staria people mover and Staria Load commercial van, have just been updated with hybrid variants, while the Staria Load EV is due in showrooms later this year.

The i30 Sedan, Kona, Tucson, Santa Fe and Palisade are offered with hybrid as well as more affordable petrol powertrains in Australia.

“Right now, we have some other products that are ICE powertrains, [and] unless there’s an alternative we’ve got to consider where we want to keep them in the portfolio," said Mr Donaldson.

“The follow-up question is, so what does that mean for i20 and i30? … What does that mean for Kona ICE and Tucson ICE, what’s the long term for them?”

The Venue small SUV and Sonata N Line sedan are currently the only Hyundai nameplates sold exclusively with petrol power, and will become the brand's only standalone ICE models once the outgoing i20 N and i30 N hot hatches leave showrooms by the end of 2026.

“What is the next evolution of that hot hatch market? Whether that’s more highly efficient EV cars or whether it’s HEV, where’s the next evolution from that point of view? I think they’re still to play out,” Mr Donaldson said.

Hyundai's global research and development (R&D) boss Manfred Harrer told Autocar in June 2026 the i20 N will return, and hinted at hybrid power rather than following the Volkswagen ID. Polo GTI into becoming an EV.

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