Re: USA: Hyundai to develop a Pickup Truck This Hyundai Pick up truck is unlikely to find many buyers in the North American market. This is a platform based on Hyundai Tuscon compact crossover and that tells you something. It is likely to be powered by a four-cylinder gasoline/diesel engine.
Quarter ton pick up segment is a cut-throat market dominated by Toyota Tacoma, Chevy Colorado and Nissan Frontier. Jeep Gladiator and the soon to be launched Ford Ranger will also jump into the fray come 2019.
Let’s look at the sales numbers (US only) in this segment for 2017; Toyota Tacoma sold 198,124 units followed by Chevy Colorado that sold 112,996 units and Nissan Frontier that sold 74,360 units. The lightweight pick up truck in the segment which is Honda Ridgeline sold all of 34,749 units in 2017 & this is the sub-segment that Hyundai will be going after.
Honda launched Ridgeline in 2005 and sold 45,493 units in the very first year which was impressive. The sales of Ridgeline have declined over the years and Honda has been unable to arrest the decline despite pumping hundreds of millions of dollars in upgrading the platform/drivetrain over the last 14 years.
Quarter ton trucks although largely a lifestyle vehicle also sometimes double up as work trucks or used for the weekend trip to the mountains sometimes with a couple of dirt bikes thrown in the back or to haul house old stuff occasionally. All the quarter ton pick up trucks offer a 4X4 option whereas Honda Ridgeline offers a torque vectoring AWD and 99% of the quarter ton pick up trucks that are sold have a proper 4X4 option.
As a potential customer, I would any day opt for a quarter ton pick up such as Tacoma, Colorado or a Frontier than a crossover style Ridgeline especially when there is practically no price difference. Here in Canada, the base price of a Honda Ridgeline Sport (Crew cab) is $42,711 and Toyota Tacoma 4X4 (a proper low range transfer case) (Double cab) starts at $40,325. As you will notice, the better equipped Toyota Tacoma is cheaper than Honda Ridgeline by $2,386. No wonder Tacoma outsold Ridgeline by 6:1 in 2017. There is definitely a price play that Hyundai can leverage to sell but it has its own pitfalls.
There is a certain brand heft that is required to sell in this segment and Hyundai currently does not have that; this pick up truck, on the other hand, might end up cannibalizing some sales of its SUVs and that might not be good news for Tuscon & Santa Fe that have just found a respectable place in customers' consideration set in recent years.
I can understand Hyundai’s eagerness to tap into a new segment but they would be well advised to bolster their SUV lineup and put money into electric/hybrid drivetrain platforms that will become critical for success in the not so far away future rather than sinking their dollars into a segment where they will find it hard to sell 20,000 units annually if that which is a pittance in a market where 2.5 million pick up trucks are sold annually.
Data source: http://www.goodcarbadcar.net/
Last edited by Vikram Arya : 11th December 2018 at 03:09.
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