Beijing Hyundai to create new SUV
The new car is most likely to be the Hyundai Tucson, which was unveiled in March this year at the Geneva Motor Show. While Santa Fe or the newly planned model for Beijing Hyundai this year has long been a topic of speculation, both Beijing Hyundai and South Korea have remained cautious. However, during the inauguration ceremony of the Beijing Hyundai Engine Factory on Wednesday, the company finally confirmed that the new model this year will be an SUV. But it's not the Santa Fe that many had expected—it's a brand-new product from Hyundai that was just launched in South Korea. All signs point to Santa Fe potentially being moved to JAC.
There were rumors that Hyundai would bring its globally popular Santa Fe to Beijing Hyundai for production. This, however, has now been confirmed as false. In a recent interview with reporters, Cui Chengqi, Deputy General Manager of Beijing Hyundai Motors, stated that the joint venture will continue to launch a new car each year, as originally promised. This year, both China and South Korea reached an agreement on the selection of the new model, which will be an SUV. Although both sides agreed on the SUV category, they haven’t yet decided on the specific model.
Since Hyundai introduced a new SUV in South Korea in March, the decision was made between this new model and Santa Fe. After considering market factors, they opted for the new product. Cui didn’t reveal the name of the new vehicle but mentioned it will be a smaller SUV than Santa Fe. It’s understood that at the Geneva Motor Show in March, Hyundai showcased its new model, the Tucson. This 4x4 SUV made its European debut and is set to compete with the Toyota RAV-4, Honda HR-V, and CR-V. Based on its release timing and positioning, it seems highly likely that the new SUV set to be produced in Beijing by year-end is the Tucson.
If Santa Fe ends up in JAC, then the fate of the model becomes clearer. With Hyundai’s three-way structure in China, after Hyundai and Huatai each secured their own SUV models, JAC, another partner, is likely to take over Santa Fe, which is destined for local production. Yan Gang, General Manager of JAC Commercial Vehicle Co., Ltd., previously mentioned that cooperation between JAC and Hyundai is expected to expand into the SUV sector. Therefore, after the rejection of Santa Fe’s production in Beijing, the chances of it moving to JAC have significantly increased.
When asked about Santa Fe’s final destination, An Jin of Jianghuai Automobile Group did not deny the possibility of it being produced at JAC, saying, “Santa Fe doesn’t necessarily have to be made at JAC.†It is known that Ruifeng has become a leading MPV in China, with sales surpassing the Guangben Odyssey and Shanghai GM8 in the first two months of this year. The success of Ruifeng has strengthened the partnership between JAC and Hyundai. According to insiders, some high-end models at JAC have already been replaced by Korean cars, including Santa Fe, and Hyundai personnel have frequently visited JAC.
All these signs suggest that JAC, supported by Hyundai, is likely to break out of the commercial vehicle sector and enter the SUV market. Santa Fe’s 2.7-liter engine is mainly designed for North American consumers, while its avant-garde design and relatively low price make it appealing to urban young people. Currently, the four-wheel-drive version of Santa Fe is priced around 3.2 million yuan in China. If Santa Fe ends up at JAC, Hyundai could establish a triad of competitive models in the Chinese SUV market, bringing a new wave of product innovation.
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