Hyundai Motor Company is targeting the global sports utility vehicle (SUV) market with its "Boldest Tucson" concept. The strategy emphasizes the traditional strength of SUVs while leveraging hybrid competitiveness and artificial intelligence (AI) to defend the vehicle's residual value. The company also outlined plans to expand its market presence using a global production system connecting Korea, the U.S., and Europe.
Jose Munoz, CEO of Hyundai Motor Company, revealed the global market strategy for the fifth-generation Tucson at the "All-New Tucson World Premiere" event held in New York on October 1. The event was attended by Lee Sang-yup, Vice President of Hyundai Genesis Global Design, Jeong Jin-hwan, Head of Vehicle Development, and Eric Wood, Head of Product Experience at Fortytwo Dot.
Hyundai chose the U.S. as the global launch venue for the new Tucson to highlight both its identity and marketability. The U.S. is one of the key markets where the Tucson is sold the most, with one in four Tucson vehicles sold globally coming from the U.S. The introduction of the outdoor-focused XRT Pro trim is aimed at appealing to the diverse American market, which features both bustling urban areas and rugged nature.
Munoz stated, "The U.S. is one of the most competitive markets, and we wanted to provide drivers with a fun and unique experience. While many compact SUVs are becoming more crossover-like, the Tucson focuses on a traditional SUV appearance."
Hyundai's confidence in targeting the U.S. market is bolstered by its hybrid competitiveness. Sales of Hyundai hybrids in the U.S. have surged by 56% this year compared to the previous year. In September alone, hybrid sales increased by 39%, accounting for 28% of total sales. The company continues to grow in the U.S. hybrid market, led by models like the Elantra and Tucson.
The new Tucson model features a next-generation hybrid system based on a dual-motor setup, delivering a combined output of 233 horsepower. It includes a "Stay Mode" that allows the use of climate control and infotainment functions without running the engine, providing an electric vehicle-like driving experience.
Hyundai announced plans to incorporate AI into future vehicles to enhance residual value. The new Tucson is equipped with the Hyundai Group's next-generation infotainment system, "Pleos Connect," and a generative AI-based voice assistant, "Gleo." Continuous software updates via over-the-air (OTA) will help maintain the vehicle's value in the lease-focused U.S. market.
Munoz emphasized, "In terms of residual value, software upgrades are crucial. If the latest features are continuously applied after purchase, it will benefit both customers and vehicle value."
The fifth-generation Tucson will be produced at Hyundai's Ulsan plant in Korea, with plans to respond to regional demand from the Alabama plant in the U.S. and the Nošovice plant in the Czech Republic. Specifically, the Ulsan plant will handle domestic and export production, while the U.S. plant will manage sales volume for the American market starting early next year. The Nošovice plant will cater to European market demand.
During the event, Munoz pointed to supply chain disruptions as a reason for recent struggles in some markets, despite Hyundai's strong production capabilities. He noted that the impact of union strikes in Korea significantly affected production.
He stated, "The main reason for the difficulties in the Korean market was supply. The impact of the strikes was greater than other external factors like tariffs or the war in Ukraine. Once supply normalizes, we will be able to implement more strategies."
In response to a question about declining Tucson sales in China, he acknowledged, "We recognize that our initial response to the rapid electrification and transition to new energy vehicles in the Chinese market was somewhat lacking. However, we will regain the trust of Chinese consumers by restoring our unique technology, impeccable quality, and premium brand value without getting swept up in destructive price competition locally."
* This article has been translated by AI.
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