Saturday, January 31, 2026

Hyundai to kill off its only ute early in anticipation of something bigger – report

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Hyundai is reportedly planning to end production of the Santa Cruz early due to sluggish sales of the lifestyle ute.

Sources have told Automotive News the original plan was for the ute to march off into the sunset during the second quarter of 2027, but the date is being moved forward. Additionally, the current production rate is being halved as Hyundai attempts to reduce the Santa Cruz’s high inventory levels.

If the report is correct, it will free up capacity at Hyundai’s Alabama factory to produce more of the closely related Tucson SUV.

In response, Hyundai USA told the trade publication the ute’s “life cycle plans remain unchanged”.

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Given lacklustre sales of the Santa Cruz, it won’t be replaced directly. Instead the company has confirmed it is working on a body-on-frame ute that will debut before 2030 in the US.

This ute will be developed in-house and will be a “mid-size” model that will take on the likes of the Toyota Tacoma, Ford Ranger, Chevrolet Colorado, GMC Canyon and Nissan Frontier. The mid-size ute could also spawn a SUV spinoff to tackle the Toyota 4Runner.

It’s unclear if this new American ute will be the model to fulfill Hyundai Australia’s long-held desire for a body-on-frame ute.