Plug-in hybrid (PHEV) technology is growing in popularity among Australian new-car buyers by leaps and bounds, but Hyundai remains hesitant to introduce such powertrains in its popular SUV models.
Speaking with CarExpert, product development and planning manager for Hyundai Australia, Tim Rodgers, said he’s “not really sure” if the Korean brand’s customers would flock to a Tucson PHEV or Santa Fe PHEV given the potential price premiums.
“It’s certainly within our technology portfolio, but ultimately it’s whether customers will be willing to vote with their wallets and purchase it,” Mr Rodgers said.
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“For the brands that offer PHEVs, we can see that that’s usually the only hybrid offering they’ve got, and they’re pricing it at hybrid price points. So I’m not actually sure if customers are choosing that because of the PHEV element or because it’s at that price point and hybridised.
“We mapped out and studied what a plug-in hybrid price walk would be above our hybrids, and I’m not really sure if customers are ready for that yet, the way we would have to offer it. Until we can optimise that a bit better, maybe we have to wait a little bit.
“Let’s see how NVES impacts us, and how we can cost-optimise that technology to then maybe offer it,” Mr Rodgers added.
While he didn’t explicitly call out any specific rival makes or models, Mr Rodgers is clearly referencing the influx of plug-in hybrid SUVs from cheaper Chinese brands driving PHEV growth in Australia.
Hyundai’s global PHEV portfolio is pretty much limited to the Tucson and Santa Fe SUVs, with Europe and North America being key markets – though it’s worth noting the Tucson is offered in two different body lengths depending on region, with Australia and the US using the longer body.
The drivetrain in both is the same 1.6-litre turbocharged plug-in hybrid system used in the likes of the related Kia Sportage and Sorento. Only the latter is sold in Australia, and offers system outputs of 195kW and 350Nm, while the 14kWh lithium-ion battery offers up to 68km of EV range on the NEDC cycle.
While the Kia Sorento PHEV costs over $11,000 more than the equivalent Sorento Hybrid AWD, the plug-in significantly reduces CO2 emissions – a key metric under the Federal Government’s New Vehicle Efficiency Standard (NVES) – quoting 37g/km versus 129g/km for the Hybrid AWD.
The current Tucson and Santa Fe ranges offer the same self-charging hybrid system as the aforementioned Sorento, but in the latter there’s also a high-emitting 2.5-litre turbocharged petrol engine – CO2 emissions for the 2.5 T-GDi (212g/km) are well up on the HEV (128g/km).
Given the 2026 NVES CO2 cap for Type 1 (i.e. passenger vehicles) has reduced to 117g/km and will further tighten to 92g/km in 2027, a Santa FE PHEV in particular shapes as a viable option to reduce the nameplate’s average CO2 emissions.
The smaller Tucson is perhaps less vulnerable to NVES penalties for the time being, though the hybrid version already exceeds the 2026 cap (121g/km) and while the non-hybrid turbo-petrol engine is no more for MY26, the base 2.0-litre petrol engine quotes a combined 184g/km.
Sales of PHEVs in Australia posted the largest percentage growth in 2025 of any fuel type, up 130.9 per cent year on year to 53,484 units, or around 50 per cent of EV sales (103,270, up 13.1 per cent).
A large chunk of this growth was driven by new makes and models from China, including the BYD Shark 6 (18,073 units) and Sealion 6 (9055 units, up 46.1 per cent). Other strong performers included the GWM Haval H6 (2542) and Cannon Alpha (1371) PHEVs, as well as the Mitsubishi Outlander (4110).
That momentum looks to be continuing in 2026, with January VFACTS showing 170.5 per cent growth in the PHEV segment, while pure petrol and diesel sales continue to fall and hybrid sales stabilise. EVs also increased by an impressive 93.3 per cent in the first month of 2026.
Hyundai’s executive team said at the launch of the new electric Elexio that it has a primary focus on hybrid models for the coming 12-18 months, off the back of a successful 2025 where it was second only to Toyota in sales.
Add the fact that the brand’s local operating chief also said he “wants to beat everyone” on the sales charts, PHEVs could play an important role in bringing Hyundai to a new, rapidly growing audience if the Korean brand can get the price right.
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