Hyundai’s Santa Fe PHEV Model: Bringing Long-Distance Electric Driving

Hyundai’s Santa Fe PHEV Model Launch Imminent
The test Vehicle was Spotted
Changes with Second-Generation PHEV System

The release of the Santa Fe plug-in hybrid (PHEV) is approaching. Recently, test vehicle driving of the Santa Fe PHEV model was captured, raising consumers’ expectations. The 4th generation PHEV model has already been released in the U.S., but the PHEV version has not been launched in South Korea.

This was due to the lack of profitability in the South Korean market, and it was challenging to compete on price with pure electric vehicles that benefit from the South Korean government’s eco-friendly vehicle subsidies. There were many evaluations that the pure electric mode driving range was short compared to the high price, making it less practical.

EV Mode Driving Distance Doubles
Expected to Drive Up to 62 Miles

Hyundai and Kia recently changed their sales strategies, which appear to have been influenced by the development of the second-generation PHEV system. The previously launched Santa Fe PHEV model for the U.S. market is based on a 1.6 turbo hybrid and has a combined total output of 261 horsepower. The battery has a capacity of 13.8 kWh and can travel 50 km (31 miles) in pure electric mode.

The second-generation PHEV to be applied this time is known to drive a whopping 100 km (62 miles), which is twice as long. It is possible to drive within the residential area in electric mode alone. The actual effect of improving fuel efficiency is also evaluated at a level that can be directly felt. Hyundai plans to apply the second-generation PHEV first, starting with the XM5, Grandeur (Azera for the North American market), and Sorento.

Can it Be Competitive in the Market?
Electric Vehicle Demand is Decreasing

It is also worth noting that the demand for electric vehicles is not what it used to be. Subsidies for electric vehicles are decreasing every year, and there are many complaints about charging facilities. As electric vehicles are no longer as powerful as before, changes have occurred in the South Korean automobile market, with demand for electric vehicles shifting to hybrids (including PHEVs).

Last year, total sales of electric vehicles in South Korea amounted to 162,000 units, a decrease of 2,000 units compared to the previous year. Some say that it is still too early for electric vehicles. As the presence of electric vehicles decreased, Hyundai established a strategy to compete again through the PHEV model. However, South Korean consumers remain skeptical. This is because the price burden is expected to be large.

High prices are an obstacle to sales
The price of the model for the U.S. market is $42,000

The price of the Santa Fe PHEV model for the North American market starts at $42,000. As an improved PHEV system is applied, a price increase is possible upon launch in the South Korean market. It appears that many consumers will feel burdened by the price, which is more than $14,900, higher than the base model’s starting price.

Nevertheless, it is worth purchasing if the driving conditions are right. Although it cannot be compared to electric vehicles, it is expected to be able to attract new demand groups as the pure electric mode driving range is significantly increased to 100 km (62 miles) compared to existing models. Attention is being paid to what kind of changes the Santa Fe PHEV model, which will be launched this time, will bring about in the South Korean automobile market.