Beijing Hyundai to create new SUV

The new car is most likely the Hyundai Tucson, which was unveiled at the Geneva Motor Show in March. While Santa Fe or a new model plan for Beijing Hyundai had been under intense speculation this year, both Beijing Hyundai and South Korea remained cautious. However, during the opening ceremony of the Beijing Hyundai Engine Factory on Wednesday, the company finally confirmed that this year's new model will be an SUV. But it won't be Santa Fe—instead, it will be a newly launched product from Hyundai in South Korea. All signs point to Santa Fe possibly being assigned to JAC. There were rumors earlier this year that Hyundai would bring its globally renowned Santa Fe to Beijing Hyundai for production. However, this has now been officially denied. In an interview last week, Cui Chengqi, vice president of Beijing Hyundai Motors, stated that the joint venture will continue to launch a new model each year as promised. This year, China and South Korea have agreed on an SUV model, but they haven’t finalized the specific model yet. Since the release of a new SUV by Hyundai in March, the decision has been made between this new model and Santa Fe. After considering market factors, the company chose to go with the new product. Cui didn’t reveal the name of the new model, but he mentioned it will be a smaller SUV than Santa Fe. At the Geneva Motor Show in March, Hyundai showcased its new Tucson, a 4x4 SUV that made its European debut and is set to compete with the Toyota RAV-4, Honda CR-V, and HR-V. Given its timing and positioning, it’s likely that the upcoming Beijing-produced SUV will be the Tucson. As Santa Fe’s potential placement at JAC becomes clearer, its final destination also seems more certain. With Hyundai's three-way layout in China, where Hyundai and Huatai have already secured their own SUV models, JAC is expected to take over Santa Fe, which is destined for Chinese production. Yan Gang, general manager of JAC Commercial Vehicle Co., Ltd., previously mentioned that cooperation between JAC and Hyundai may expand into the SUV sector. Therefore, after the rejection of Santa Fe’s production in Beijing, the likelihood of it being produced at JAC has increased significantly. When asked about Santa Fe’s final fate, An Jin of Jianghuai Automobile Group did not rule out the possibility of it being produced at JAC, saying, “Santa Fe doesn’t necessarily have to be made at JAC.” It’s worth noting that Ruifeng has become a dominant MPV in China, with sales surpassing the Guangben Odyssey and Shanghai GM8 in the first two months of this year. Its success has strengthened the partnership between JAC and Hyundai. According to insiders, some high-end models at JAC have already been replaced by Korean vehicles, including Santa Fe, and Hyundai personnel have frequently visited JAC. There are clear signs that JAC, with support from Hyundai, is aiming to move beyond commercial vehicles and enter the SUV market. Santa Fe, with its 2.7-liter engine, was mainly designed for North American consumers. Its avant-garde design and relatively low price make it appealing to young urban customers. Currently, the four-wheel drive version of Santa Fe is priced around 3.2 million yuan. If Santa Fe ends up being produced at JAC, Hyundai will have three strong models competing in the Chinese SUV market, leading to a new wave of product innovation and competition.

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