Hyundai Motor Co. is trimming its car lineup to focus on crossovers and its budding battery-electric Ioniq sub-brand.
For model year 2023, the Korean automaker will cut the Accent subcompact sedan, the Veloster N hatchback and both the hybrid and plug-in hybrid variants of the Ioniq compact car.
The last sedans standing for the brand will be the forthcoming Ioniq 6 all-electric midsize sedan that will go on sale in early 2023, and the midsize Sonata and compact Elantra, which Hyundai says are both still in demand in a market now dominated by crossovers.
“Like some of our competitors, we have decided to stay in the passenger car business, and some of our best-performing vehicles, like Elantra or like Sonata, are still doing quite well,” said Hyundai Motor Co. COO Jose Munoz, during a media briefing this week at the company’s R&D center in Michigan.
Through June, sales of the Sonata and Elantra slid 64 percent and 34 percent respectively as Hyundai prioritizes production of its higher-margin crossovers and EV. But the Elantra ended 2021 up 18 percent, with sales topping 124,420. Elantra sales hit 93,142, representing an increase of 21 percent.
Both sedans offer a gas and a hybrid variant, and hybrids are an important part of Hyundai’s electrification strategy as it strives to meet stringent emissions regulations in the U.S. by 2026. Hyundai also believes that offering gas-buyers more electrified options will help ease them into EVs in the future.
“The strategy of having not only battery EVs, but having more traditional ICE models in combination with hybrids — like Elantra also having a hybrid version, Sonata also having hybrid and plug-in hybrid version — is working well,” Munoz said.
Hyundai will now rely on the Venue subcompact crossover to fill the outgoing Accent’s entry-level role. The Venue mixes fuel efficiency and modern styling closely related to Hyundai’s flagship three-row Palisade. Pricing has not been announced for the 2023 model, but the current model year Venue is $20,295, including shipping.
Removing the Veloster N will allow Hyundai to refocus its performance-oriented N brand, which added the Kona subcompact crossover and the Elantra compact sedan for 2022.
The Kona N uses a 2.0-liter turbocharged four-cylinder engine paired to an eight-speed dual clutch transmission. The 2022 Kona N costs $35,495 with shipping. The Elantra N offers the same powertrain and costs $34,745. There also is a manual transmission option, which costs slightly less. Hyundai has not announced pricing for 2023 model year.
