Hyundai Motor Co. is trimming its car lineup to focus on crossovers and its budding battery-electric Ioniq subbrand.
For the 2023 model year, 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 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,” Hyundai Motor Co. COO Jose Munoz said during a media briefing this week at the company’s R&D center in Michigan.
Through June, sales of the Sonata slid 64 percent and sales of the Elantra slid 34 percent, as Hyundai prioritizes production of its higher-margin crossovers and electric vehicles. But the Elantra ended 2021 up 18 percent, with sales topping 124,420. Sonata sales hit 93,142 last year, representing an increase of 21 percent.
Both sedans offer 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 a 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 it added to the Kona subcompact crossover and the Elantra 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 the 2023 model year.
Hyundai is also ditching its Ioniq hybrid and plug-in hybrid as it unfolds the new Ioniq badge. The original Ioniq EV was discontinued for the 2021 model year. Moving forward, Ioniq EVs will be built on Hyundai’s Electric Global Modular Platform, known as E-GMP, which will enable fast charging capability and ample driving range.
Hyundai Motor Group, which includes Hyundai, Genesis and Kia, has said it wants to hit sales of 3 million EVs globally by 2030. That includes 11 battery-electric models for the Hyundai brand.
Such an aggressive goal could pit the upcoming Ioniq 6 sedan against the Sonata in the future. But it is possible that the Sonata will not live beyond its current generation, though Hyundai maintains such rumors are speculation. The Asan plant in South Korea where the car is built has shifted away from producing the sedan in favor of the Ioniq 6.